Territory delays debt restructure plans
You can purchase access to this special report or subscribe to Business News.
Subscribe to Business News.
Cash-strapped Territory Resources has again extended its standstill agreement with its financiers over debt restructure plans.
The announcement is below:
Territory Resources Limited (ASX: TTY - "Territory" or "the Company") advises that it has reached agreement with its financiers, the hedge book facility provider ("Bank") and Noble Resources Limited ("Noble"), for a further 6-week extension of the previously announced Tripartite Standstill Agreement (refer ASX announcements dated 1 April 2009 and 2 July 2009).
The Company, Noble and the Bank all remain committed to finding a satisfactory, long-term solution with the delays in resolving the situation due to normal and ongoing commercial discussions between the parties.
Territory's Board has reluctantly concluded that its securities must remain in suspension due to the confidential nature of the ongoing discussions and until final agreement is reached.
"All parties are continuing to work very hard towards achieving this," said Territory's Chairman, Mr Andrew Simpson.
"While it is extremely frustrating that our shares must remain in voluntary suspension until an outcome can be announced, this further six week extension of the standstill arrangements reflects the strong commitment of all parties to settle on the necessary debt restructure and the significant positive market developments seen in recent months," he continued.
As reported recently, Territory achieved a significant increase in shippable tonnes from the Frances Creek Mine during the June 2009 Quarter, with 548,601 tonnes shipped in seven shipments. Cash operating costs fell to A$46/tonne loaded on the boat in Darwin during June - an outstanding result which positions the Frances Creek operation very competitively on the cash cost curve given its relatively small scale of production. The Company continues to maintain a fully sold position and, until the Memoranda of Understanding in place are converted to long term agreements, all product is being sold into the spot market.