24/07/2017 - 12:52

Paladin administrators restructure debt

24/07/2017 - 12:52

Bookmark

Save articles for future reference.

The administrators of Paladin Energy have entered into an agreement with Deutsche Bank to refinance some of the troubled uranium miner’s debt and fund ongoing work at the Langer Heinrich mine in Namibia.

Paladin administrators restructure debt
Paladin is trying to sell its stake in the Langer Heinrich uranium mine in Namibia.

The administrators of Paladin Energy have entered into an agreement with Deutsche Bank to refinance some of the troubled uranium miner’s debt and fund ongoing work at the Langer Heinrich mine in Namibia.

Under the agreement, Deutsche Bank will acquire an existing $US20 million revolving credit facility with South Africa-based Nedbank and increase it to $US60 million, with a term of 12 months.

About $US45 million of that facility will be available for Paladin and joint venture partner, CNNC Overseas Uranium Holdings, to fund working capital needs at Langer Heinrich, while the remaining $US15 million will be made available to Paladin and KPMG as its administrators to fund general corporate needs.

The debt refinancing comes days after an independent expert put a $US416 million value on Paladin’s 75 per cent stake in Langer Heinrich, which the company is hoping to sell to CNNC in order to pay off its outstanding debts.

Paladin owes about $US277 million to creditor Electricite de France, while convertible bond holders are owed $US362 million.

CNNC has less than a month to take up its option to acquire the stake.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options