17/06/2009 - 14:22

Territory pursues debt restructures

17/06/2009 - 14:22

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Territory Resources' shares have been placed in a trading halt as the struggling miner finalises its debt restructuring and capital raising plans.

Territory Resources' shares have been placed in a trading halt as the struggling miner finalises its debt restructuring and capital raising plans.

The company said in a statement it expects to make an announcement by the start of trade on Friday.

Shares in Territory last traded at 22.5 cents.

In April, Territory entered a standstill agreement with its financiers - including Hong Kong company Noble Resources - aimed at providing all parties time to develop a debt restructuring plan.

Under the agreement, Territory's bank and Noble agreed to refrain from exercising any action in respect of their debts until June 30.

As security, Territory agreed to provide a fixed and floating charge over its assets and mortgages over its shares in key subsidiaries and the Francis Creek mining lease to secure further funding from the bank and Noble.

The bank agreed to loan Territory $11 million under a short-term facility and Noble provided a $US29 million loan facility.

Territory reported a $33 million loss for the December half, taking a collective $38 million hit from foreign exchange losses and impairment charges relating to its foreign exchange hedge book and external investments.

Underlying net profit was $4.76 million which was based on sales revenue of $65.5 million.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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