A significantly amended plan of reorganization from Montana Tunnels Mining, Inc. (MTMI), the long-troubled owner of a shuttered mining complex in Jefferson City, was confirmed Oct. 4 by a U.S. Bankruptcy Court judge, clearing the way for creditors to be repaid over several years and leaving open the possibility that the operation may one day reopen.
After a final hearing in Butte, featuring an appearance by MTMI CEO Patrick Imeson, Judge Benjamin P. Hursh ruled that the company’s third amended plan “satisfies all provisions” of Chapter 11 of the federal bankruptcy code.
The plan generally commits MTMI to paying off its creditors in monthly installments over four years, beginning in January, 2024 — $130,000 a month to Goldfields Funding, an affiliate company, and about $126,000 per month to other claimants. It calls for MTMI’s parent company, Montana Goldfields. Inc., to pay $150,000 per month to partially fund those payments. In addition, MTM will lease its Diamond Hill Mill property, near Wickes, to Elkhorn Goldfields, Inc., a related Montana Goldfields company, raising $275,000 a month.
