Paladin restructuring hits wall
Up to 1 000 jobs at Paladin could be lost as a result of the restructuring process which appears to have been delayed.
It does not rain but it is pouring for the owners of Paladin whose efforts to sell a stake of its Langer Heinrich mine have hit a snag following differences between intended owners China National Nuclear Corporation (CCNC) and Paladin regarding a possible restructuring deal.
As a result, up to 1 000 Paladin employees could be affected as the Langer Heinrich mining operations could go into hibernation.
Langer Heinrich is Paladin's only active mine while its Malawian interest is still in care and maintenance.
With the planned restructuring, Chinese involvement in the mine would have gone up to 75% but this appears to have hit a snag.
Voicing his displeasure, Paladin CEO Alexander Molyneux said: “CNNC´s actions are disappointing given the support the restructure proposal has received to date, CNNC´s failure to proceed with the acquisition of an additional 24% stake in the Langer Heinrich Mine (LHM) when it was offered to them last year, and CNNC´s repeated refusal to fund the working capital requirements of LHM. As a result, CNNC, our joint venture partner, has put at risk the interests of Paladin´s stakeholders, including approximately 26 000 small shareholders, approximately 1 000 employees, international financial institutions and sovereign-related entities. Paladin intends to dispute CNNC´s actions unless an acceptable compromise can be reached with CNNC.”
Shares in Paladin Energy nosedived after the embattled uranium miner announced a complex refinancing to restructure its borrowings as it failed to sell off 24% of its flagship Langer Heinrich Mine, Mining Weekly reported.
The main purpose of the restructuring proposal is to address the upcoming maturity of Paladin's outstanding US$212 million convertible bonds due 30 April 2017, Paladin said at the time.
“Paladin has done enough to ensure a successful solvent restructuring. It has taken significant steps to progress the restructure proposal in order to achieve a successful solvent restructuring, seeking to preserve value for all stakeholders,” Molyneux said recently.
“In the meantime however, Paladin´s shares will remain in suspension until Paladin has resolved how it will progress the restructure proposal, or a viable alternative.
OGONE TLHAGE
As a result, up to 1 000 Paladin employees could be affected as the Langer Heinrich mining operations could go into hibernation.
Langer Heinrich is Paladin's only active mine while its Malawian interest is still in care and maintenance.
With the planned restructuring, Chinese involvement in the mine would have gone up to 75% but this appears to have hit a snag.
Voicing his displeasure, Paladin CEO Alexander Molyneux said: “CNNC´s actions are disappointing given the support the restructure proposal has received to date, CNNC´s failure to proceed with the acquisition of an additional 24% stake in the Langer Heinrich Mine (LHM) when it was offered to them last year, and CNNC´s repeated refusal to fund the working capital requirements of LHM. As a result, CNNC, our joint venture partner, has put at risk the interests of Paladin´s stakeholders, including approximately 26 000 small shareholders, approximately 1 000 employees, international financial institutions and sovereign-related entities. Paladin intends to dispute CNNC´s actions unless an acceptable compromise can be reached with CNNC.”
Shares in Paladin Energy nosedived after the embattled uranium miner announced a complex refinancing to restructure its borrowings as it failed to sell off 24% of its flagship Langer Heinrich Mine, Mining Weekly reported.
The main purpose of the restructuring proposal is to address the upcoming maturity of Paladin's outstanding US$212 million convertible bonds due 30 April 2017, Paladin said at the time.
“Paladin has done enough to ensure a successful solvent restructuring. It has taken significant steps to progress the restructure proposal in order to achieve a successful solvent restructuring, seeking to preserve value for all stakeholders,” Molyneux said recently.
“In the meantime however, Paladin´s shares will remain in suspension until Paladin has resolved how it will progress the restructure proposal, or a viable alternative.
OGONE TLHAGE
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