10th Sep 2014 07:56
LONDON (Alliance News) - New World Resources PLC shares plunged in early trade on Wednesday after the group said it concluded the court process in the US and reached agreements on amendments to the restructuring of its export credit agency-backed loan, all as part of its ongoing restructuring.
Shares in the company lost half their value in early trading, down to 3.226 pence and leading the fallers on the London market. They currently are quoted at 3.50p, down 45%.
In addition, the group said it reached the completion of the UK court process and was given approval for the restructuring plan on Friday.
It said the final part of its restructuring process yet to be completed is the EUR185 million fundraising it is seeking. That will comprise a EUR118 million rights issue, a EUR32 million equity placement, and a EUR35 million super-senior credit facility from noteholders.
In the US, the approval was given in a New York court on Tuesday for the restructuring with regards to its senior secured and unsecured notes, which are governed by New York state law.
On the export credit agency loan, New World said the maturity of the deal has been extended from 2017 to 2022, with the next scheduled payment to occur in June 2016, with scheduled repayments to then happen semi-annually going forward.
New World said it expects to complete the restructuring process in early October.
By Sam Unsted; [email protected]; @SamUAtAlliance
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