Kumtor Gold Beats Kyrgyz Objection to $10 Million Bankruptcy Loan

Bankrupt gold miner Kumtor Gold Co. won court approval to borrow up to $10 million after defeating the Kyrgyz Republic’s objection to the loan request.

Kumtor Gold, a subsidiary of Toronto-based Centerra Gold Inc., filed for bankruptcy in June after the Central Asian country seized control of the company’s mine following passage of a law that enhanced state power.

The Kyrgyz Republic, which is challenging Kumtor’s right to protection in U.S. bankruptcy court, said the court shouldn’t allow the loan until the country’s motion to dismiss the case is heard early next year.

But the company showed that the loan ...