Firestone completes first settlement under financial restructuring process
In the first-stage settlement of South African coal miner Firestone Energy’s financial restructuring, it had sold 27.15-million new convertible notes (NCNs) to Ariona Company for A$5-million in cash.
This was in accordance with an invest-ment agreement with Ariona Company, BBY Nominees and Jaguar Funds Management.
The A$5-million comprised the addi-tional A$600 000 in interim funding the company received and the drawdown from the original A$1-million working capital facility, which was rolled on to the new convertible notes.
StipulationThe agreement also stipulated that Firestone would issue the notes to Ariona for the redemption and replacement of A$21.3-million of existing convertible notes (ECNs) and accrued interest of A$845 000.
Further, the holders of the ECNs were issued 241.146-million fully paid ordinary shares in the company in satisfaction of the balance of the interest, which had accrued on the ECNs.
As a result of the redemption of the ECNs, 300-million incentive options were issued to the former holders of the ECNs.
Second Stage Under the second stage of Firestone’s financial restructuring, Ariona will provide a further A$12.5-million for NCNs, which will be applied to additional working capital. The second stage is scheduled to start by February 28.
In accordance with the restated investment agreement, from conclusion of the first-stage settlement, Ariona nominated and Firestone appointed three persons to the board of Firestone: Lawson Gold chairperson and Phoenix Copper nonexecutive director David Hillier, Frankland River Olive Company acting MD and Black Star Petroleum director Oren Zohar and Eumeralla Resources and Black Star Petroleum director Jack James.
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