Struggling vanadium miner Atlantic has 45 business days to replenish an interest reserve account or reach agreement to reduce its minimum holding, after it breached a covenant on its $US335 million secured notes facility.
Atlantic announced today that its subsidiary, Midwest Vanadium Pty Ltd, breached an indenture covenant on its interest reserve account when it paid an interest coupon of $US19.3 million on the notes on February 15.
This took the balance in the reserve account under the $US14.3 million currently required under the indenture.
The company has 45 business days to replenish the account, or reach agreement with noteholders on a revised minimum balance requirement.
Atlantic said discussions with the majority of the holders of the note facility to reduce the minimum holding requirement were ongoing.
“The MVPL board is confident it can put in place the necessary arrangements to address the shortfall within that timeframe,” the company said in a statement.
“Importantly, the company advises significant progress continues to be made at Windimurra.
At close of trade today, Atlantic shares were down 4.3 per cent, trading at 22.5 cents.
