16th Sep 2014 08:52
LONDON (Alliance News) - Petropavlovsk PLC Tuesday said full repayment of its existing convertible bonds may not be possible and has said it is working on a new issue of bonds to exchange which include a cash element, sending shares in the company lower in early trade.
The gold miner saw its shares fall 14% in early trade to 34.55 pence, putting it among the worst performers on the London market.
The company said it is working on the issue of new convertible bonds which would be offered in exchange to holders of its existing convertible bonds due in February 2015. It said the new bonds would also have a cash element, the size of which depends on the success of the company's upcoming rights issue.
The group said certain existing shareholders have expressed their support for the rights issue and the company intends to follow this up, along with entering talks with third parties which have expressed an interest in participating in the deal.
It also said it has so far held discussions with bondholders representing around 20% of the outstanding amount owed on the existing bonds and said the majority of these, representing a total of 18% by total value of the bonds, had expressed support for the move.
By Sam Unsted; [email protected]; @SamUAtAlliance
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