Atlas shareholders vote to restructure debt

PERTH (miningweekly.com) – The shareholders of iron-ore miner Atlas Iron have voted in favour of a debt restructuring deal, allowing the company to remain afloat despite the difficult market conditions.

Shareholders holding a combined 97.87% of the company voted in favour of the transaction, while those holding only a 2.13% combined interest voted against.

The debt restructuring plan, which was agreed to with more than 75% of the company’s term loan B (TLB) lenders, and the amendment of its existing syndicated facility agreement.

Under the two agreements, Atlas would pay down $10-million of the TLB loan and issue shares and options to the TLB lenders in exchange for 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.

Atlas chairperson Cheryl Edwardes told shareholders ahead of the vote that should the debt restructuring be approved, the company was likely to have a sustainable future, and could maximise its potential to generate returns for shareholders.

“The benefits of this restructuring will be combined with the extensive operational savings Atlas has made over the past year or so to leave the company well positioned to capitalise on any sustained, positive trends in the iron-ore price,” Edwardes said.

With the debt restructuring approved, Atlas board members Jeff Dowling and Ken Brinsden were expected to resign, while Alan Carr, Eugene Davis and Daniel Harris would be appointed as non-executive directors on the implementation of the debt restructure.