Creditors want Yukon Zinc's court protection lifted

Twotrucking companiesfrom Yukon and B.C.will ask theB.C. Supreme Court to step aside so theirclaims against Yukon Zinccan proceed in the Yukon Supreme Court.

The Chinese-backedmining companyhas been under courtorderedcreditor protectionsince closing theWolverine Mine, north ofWatson Lake,in January.

Yukon's Sidhu Trucking and B.C.-based Hy's North Transportation will ask in court on Thursday for the protection to be lifted so they can pursue liens against the companytotalling almost $1.5 million.

Both companies had contracts to haul ore and other freight for the Wolverine Mine.

In court documents, Yukon Zinc argues there's no reason to lift the court protection yet.It says there should be one proceeding in which all creditors are on equal footing and which allows the company to process its claims in an orderly fashion.

The company also has until Friday to tell the B.C. Supreme Court if it intends to file a plan to deal with its creditors.

If it does not have a plan, the monitor overseeing its operations will move ahead with selling the assets.

Yukon Zinc owes more than $646 million to hundreds of creditors. Most of that debtabout $600millionis claimed by its parent company, JinDui Cheng Canada Resource Corporation Limited, which has itshead office in Vancouver.