26th Feb 2019 15:37
LONDON (Alliance News) - Petropavlovsk PLC on Tuesday said it will become a creditor of IRC Ltd in case of a credit default under the Gazprombank Facilities.
Under a new agreement, Petropavlovsk will advance funds to IRC to cure the default and become IRC's creditor to avoid Gazprombank claiming directly from Petropavlovsk.
Petropavlovsk owns a 31.1% stake in IRC, a producer and developer of industrial commodities.
Kimkano-Sutarsky Mining & Beneficiation Plant LLC, a unit of IRC, inked a USD240 million loan facility agreement with Gazprombank in December to repay in full its outstanding project finance facility with Industrial & Commercial Bank of China Ltd and bridge loans provided by Petropavlovsk to IRC.
Under the Gazprombank loan, Petropavlovsk is to guarantee the obligations of Kimkano-Sutarsky Mining up to an initial amount of around USD160 million.
Shares in Petropavlovsk were trading down 0.7% at 7.90 pence each on Tuesday afternoon.
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