Continental Coal still seeking recapitalisation solution
JOHANNESBURG (miningweekly.com) – Dual-listed Continental Coal’s shares remained suspended from trading on the Aim and ASX on Wednesday as the company was still “endeavouring” to complete a recapitalisation that would allow it to settle its convertible notes, which were maturing from November 2013 until February 2014, as well as commitments to other creditors.
Continental Coal stated that, while it had been in active discussions with the holders of convertible notes, other creditors, royalty holders and various investor groups in relation to a comprehensive recapitalisation of the company, no restructuring or refinancing arrangements that were acceptable to all parties had been agreed on yet.
The company noted that its financial position had been negatively affected by the production impact of the availability of continuous miners at its Penumbra operation, in South Africa’s Mpumalanga province.
“While the production will be augmented by the implementation of an additional conventional drill and blast production section, the ramp up of production from this is expected to take several months, placing additional pressure on the company's working capital requirements,” the coal miner explained.
Should no acceptable restructuring or refinancing arrangement be agreed in the near term, the company said the appointment of a voluntary administrator to the company in Australia could be necessary, as it would have insufficient funds to meet the repayment obligations on the convertible notes and other creditors.
Continental Coal stated that it expected to be able to make a further announcement on this matter by January 13.
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