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Continental Coal weighs its options

Continental Coal weighs its options

Photo by Bloomberg

20th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – South Africa-focused Continental Coal has again extended its voluntary suspension of its shares on the ASX and Aim, saying it might need to consider calling in administrators.

The company halted its share trading in early January as part of a recapitalisation programme that will allow Continental Coal to settle its convertible notes, which matured from November last year to February, as well as other creditors.

The company has subsequently appointed a financial adviser to conduct a solvency review as part of its recapitalisation efforts.

The miner said on Monday that it was continuing to engage with its convertible note holders, as well as other creditors and royalty holders in relation to the recapitalisation, and remained “optimistic” about reaching an agreement that would allow it to continue trading as a going concern.

If an acceptable restructure could not be agreed upon in the near-term, the company would consider appointing a voluntary administrator in Australia.

Edited by Creamer Media Reporter

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