Australian Zircon Gets Bank Deal on Debt



Home » Giveaway » Australian Zircon Gets Bank Deal on Debt

3rd October, 2009
Australian Zircon Gets Bank Deal on Debt thumbnail

alian Zircon gets bank deal on debtEditor:   From: miningnews   Click?52   Date: 2009-01-04 11:17:27TROUBLED zircon producer Australian Zircon has rearranged its debt provisions with the Commonwealth Bank of Australia, giving the company breathing room as it moves to finalise a life-saving deal with an Austrian metal trader.The company said it had agreed to [...]





alian Zircon gets bank deal on debt

Editor:   From: miningnews   Click?52   Date: 2009-01-04 11:17:27

TROUBLED zircon producer Australian Zircon has rearranged its debt provisions with the Commonwealth Bank of Australia, giving the company breathing room as it moves to finalise a life-saving deal with an Austrian metal trader.

The company said it had agreed to a binding term sheet with the Commonwealth Bank which extended the repayment of its $A5 million temporary overdraft facility until June 30 this year.

Additionally, a $47 million advance from the CBA will now be repaid from September 30, but under the refinancing terms Australian Zircon will have to pay 100% of its excess cashflow above a certain unspecified level into the debt.

The company has also agreed to other provisions, including that it will not pay dividends or many any repayments on convertible notes without the bank’s approval.

The refinancing arrangement with the CBA fulfils one conditions of a debt-for-equity deal the zircon producer inked with Austrian metals trader DCM DECOmetal.

The deal will see the Austrian company convert its convertible notes debt and its loan funds into about $40 million worth of Australian Zircon shares at 4c each.

The share placement arrangement will lift DCM’s stake in the Adelaide-based company to around 69%, and the funds will go towards the ramp-up of the company’s Mindarie zircon mine in the Murray Basin.

Australian Zircon shareholders will vote on the DCM plan on January 29.

The company ran into trouble late last year even as its Mindarie project entered production, and at the end of the September quarter Australian Zircon posted a negative operating cash flow of nearly $10 million and a negative cash balance to the tune of $843,000.

Shares in the company were last traded today 2c higher at 4c.

Possibly Related Posts:



« Personalized Gifts (Unlike Fruitcake) Will Never Be Re-gifted



FOIL GIFT WRAP PAPER BRIGHT GOLD »

Comment on this item

Comments are closed.

WEB SEARCH
RECENTLY
LINKS