True North Gems Inc. Attacks Bankruptcy Proceedings Process In Greenland

(IDEX Online) – True North Gems Inc. has provided an update on the bankruptcy proceedings involving True North Gems Greenland A/S, the Company's operating subsidiary in Greenland, with assets including the Aappaluttoq ruby and pink sapphire deposit and mine in S.W Greenland.

True North Gems management believes the bankruptcy process managed by court-appointed trustees and supported by the Greenland government was "biased, unnecessarily expedited and potentially negligent". In reaction to these concerns, the company has formed a Special Committee to investigate the process, and the decisions and actions of the trustees and the Greenland government, to determine if legal action is appropriate.

True North Gems' directors and management "are of the opinion the company and its shareholders have been unfairly treated through a biased and expedited legal process that has resulted in the destruction of True North Gems' shareholder value. The company's concerns are related to potential conflicts of interest with the court-appointed trustees and the expedited process that limited competitive bidding from third parties, failed to allow True North, or any other third party, sufficient time to develop a comprehensive bid, and worked contrary to the best interests of certain TNGG creditors, specifically True North Gems and its shareholders.

"It is also True North's position that requests for additional information and clarification should be addressed by the trustees and the courts of Greenland prior to concluding what True North Gems believes is a flawed process that has failed to deliver on the mandate of the trustees and produce results in the best interests of the shareholders and the major creditors of TNGG.

"While the company respects the laws of Greenland, and is fully willing to participate in a fair, transparent and unbiased process, True North management and the Board of Directors do not intend to comply with any demand from the trustees that would indicate the acceptance of the decision to grant the assets to LNSG until such time as full disclosure of the bankruptcy process and answers to questions sufficient to allow the company to disclose the complete details of the events and outcomes to our shareholders and the public markets, have been provided."