Paladin recapitalisation approved

Uranium miner Paladin Energy has confirmed the approval of its recapitalisation deal, which will leave existing shareholders with a 2 per cent stake in the company, and appointed Daniel Harris and David Riekie to the board.

Under the agreement, about 98 per cent of Paladin’s shares on issue will be transferred to creditors and other investors in a debt-for-equity swap.

Creditors will be transferred a 70 per cent slice of Paladin’s share issue, equivalent to about $55 million, based on the company’s market capitalisation when it last traded.

A further 25 per cent of shares will be issued to creditors who participate in a $US115 million secured note raising, while 3 per cent will be issued to the underwriter of the new bond.

The remaining 2 per cent of scrip will remain in the hands of existing shareholders.

Deutsche Bank will be repaid a $US60 million secured loan, after it bought and extended a previous loan facility from Nedbank.

In connection with the recapitalisation, Atlas Iron non-executive director Daniel Harris, has been appointed to Paladin’s board.

Mr Harris most recently was the interim managing director at Atlas, having previously worked as the chief executive at vanadium miner Atlantic.

He is also a non-executive director at Perth-based Australian Vanadium.

Mr Riekie, managing director of Canada-based iCobalt, was also appointed as a director.

Last year, Matthew Woods, Hayden White and Gayle Dickerson from KPMG were appointed administrators by the Paladin board.

Shares in Paladin last traded at 4.7 cents each before they were suspended in June.