JOHANNESBURG (miningweekly.com) − Affected creditors have approved Banro Corporation's proposed recapitalisation plan.
Banro, which operates the Twangiza and Namoya mines, in the Democratic Republic of Congo (DRC), on Friday said the creditors' approval was a key step towards its implementation and the emergence of the company and its subsidiaries from protection under the Companies' Creditors Arrangement Act (CCAA).
"The recapitalization plan represents the best alternative for the long-term interests of the Banro group, which significantly reduces debt, improves liquidity, and allows the Banro group to continue ongoing operations in the DRC," it stated in a press release.
Banro in November 2017 announced that it was in discussions with stakeholders regarding the possible restructuring of the company's non-DRC debt obligations, as well as possible financing to support its DRC operations.
A month later it filed for bankruptcy protection in Canada under the CCAA and, in January, it initiated a sale and investment solicitation process (Sisp), to be conducted in conjunction with the CCAA proceedings, to identify parties who may be interested in acquiring or investing in the business or its assets, provided that these provide a superior offer to the recapitalisation plan under the CCAA process.
During 2017, the company's operations in the DRC were severely impacted on by political instability, as well as insurgent violence.