Paladin seeks help as debt deadline approaches

Debt-troubled Paladin Energy has started discussions with some of its stakeholders and convertible bond holders about the looming deadline for a $US212 million repayment, as a cloud hovers over the company’s planned sale of a stake in its Langer Heinrich uranium mine to meet those repayments.

The uranium miner has until April 30 next year to meet a $US212 million repayment obligation for 2017 convertible bonds, and it was planning to reduce that debt by selling 24 per cent of its interest in Langer Heinrich to China National Nuclear Corporation for $US190 million.

However, Paladin told the market last month that execution of definitive documents for the deal had been delayed and a transaction close deadline in the last quarter of 2016 would no longer be reached.

“Whilst discussions with CNNC continue, the company is actively investigating alternative contingencies to assist with respect to its April 30 2017 $US212 million repayment obligation for the 2017 convertible bonds and any additional working capital requirements it may have going forward if the current low uranium spot price persists,” Paladin said in a statement today.

Paladin sold a 25 per cent stake in Langer Heinrich to CNNC for $US190 million in 2014, and would retain a 51 per cent interest in the mine if the new deal goes ahead.

Paladin shares were 16.8 per cent lower to 6.9 cents each at 12:30pm.