Mirabela stretches financing talks further

MIRABELA Nickel has again pushed back the deadline for negotiations over its financing and restructuring arrangements, including talks over a $US45 million loan ($A50.3 million).
Mirabela stretches financing talks further Mirabela stretches financing talks further Mirabela stretches financing talks further Mirabela stretches financing talks further Mirabela stretches financing talks further

Mirabela Nickel's Santa Rita project in Brazil.

Andrew Duffy

The company has pushed the deadline for perfection of the loan to next Monday, after previously delaying it from February 7 to February 12.
 
The deadline for executing a definitive agreement for restructuring and recapitalising has also been pushed to next Thursday.
 
Further negotiations have also seen changes to the drawdown features of the loan.
 
A previous agreement stipulated the third and fourth drawdowns had to be made on February 14 and 21, respectively.
 
New arrangements can see Mirabela make the drawdowns at any time prior to the termination date, provided its cash balance is less than $25 million for three consecutive business days.
 
The company said while talks over the restructure continued, no binding agreements had been reached.
 
“No assurance can be given at this stage that any definitive agreements or arrangements will be reached with any party that the company may be in discussions with,” it said.
 
Mirabela has previously warned it is in danger of going into administration due to a number of challenges, including poor market conditions and a threatened sales agreement with major customer Votorantim Metals.
 
The complexity of debt in light of the company’s operations across three jurisdictions (Australia, Brazil and the US) is expected to bring a high level of risk to any restructuring arrangement.
 
Mirabela shares remained in a trading halt today at A1.6c.

topics

loader