PERTH (miningweekly.com) – Iron-ore miner Atlas Iron said on Tuesday that it would convene a shareholder meeting on April 27, for shareholders to vote on the restructuring of the company’s debt.
Atlas in December signed agreements with more than 75% of its term loan B (TLB) lenders, and amended its existing syndicated facility agreement.
Under the two agreements, Atlas would make a pay down of the TLB loan of some $10-million and issue shares and options to the TLB lenders in exchange for the lenders retiring $132-million of debt, and extending the maturity of the remaining $135-million debt from December 2017 to April 2021.
The TLB lenders would hold a combined 70% of the company’s shares and options on issue, immediately post the restructure.
While Atlas shareholders were scheduled to meet on April 27, the Australian Federal Court has convened a meeting of the lenders for April 28 to consider the creditors’ scheme.
MD David Flanagan had previously said that the debt restructuring agreement was an important step in making Atlas more sustainable, particularly given the current iron-ore price environment.
The iron-ore miner made it through a tough 2015, which saw the forced closure of three mines and a A$180-million capital raising attempt that missed the mark by more than A$90-million.
Despite working diligently to lower C1 cash costs through a range of initiatives, the miner still reported a net loss after tax of A$114-million for the six months ended December.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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