Banro committee seeks debt restructure

A special committee comprising independent directors of NYSE- and TSX-listed Banro Corporation is in discussion with the company’s major stakeholders regarding the possible restructuring of the company’s non-Democratic Republic of the Congo (DRC) debt obligations, as well as the provision of financing to support its ongoing operations in the DRC.

Banro, which continues to face significant operational and financial challenges, including short- and long-term liquidity constraints, had established the committee to identify and recommend financing and other strategic options to the board.

The committee had already determined that there was no reasonable prospect for the company to complete a capital raise at this stage and has, thus, started discussions with stakeholders regarding the restructure of Banro’s debt.

Banro assured shareholders that it continues to take all steps necessary to ensure the continuity of its operations in the DRC, but stressed that its ability to continue operations in the normal course of business was dependent on several factors, including securing funding for operations and to meet upcoming debt servicing and working capital requirements. 

Mining operations at the company's Namoya mine, in the DRC also remain suspended, owing to the ongoing closure of road access to the mine site.   

Given the significant uncertainty surrounding the company’s ability to continue as a going concern, Banro will not be in a position to release its financial statements for the six months ended September 30.