Atlantic shares dive on finance news
PERTH (miningweekly.com) - The shareholders of ASX-listed Atlantic responded unfavourably to news that the company had 45 days to either replenish its interest reserve account (IRA) or reach an agreement with the majority note holders on revised IRA minimum holding requirements.
Atlantic in November launched discussions with the majority holders of Midwest Vanadium’s $335-million senior secured notes, which were due in February 2018, with a view to reducing the minimum holding requirement in the existing IRA.
With the dialogue still ongoing, Midwest Vanadium was required to make the February 15 interest coupon payment of $19.3-million on the notes, partly using funds in the IRA, which resulted in the IRA balance being below the $14.3-million currently required under the indenture.
Atlantic told shareholders on Monday that Midwest Vanadium’s board was confident that it could put arrangements in place to address the shortfall within the allocated timeframe.
Atlantic shares dropped by 4.26% on Monday, to trade at a low of 21c a share.
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