29th Nov 2013 10:25
LONDON (Alliance News) - Talvivaara Mining Co Friday said its corporate reorganization ws given the go-ahead by the district court in Espoo, Finland, although subsidiary Talvivaara Sotkamo Ltd has been given until December 18 to provide an auditors statement for its reorganization after creditor Nyrstar Sales & Marketing AG withdrew its support.
Separately, the company said Michael Rawlinson is stepping down as a non-executive director to take up a new role as co-head of mining at Barclays.
The company got into financial difficulty after a sharp decline in the price of Nickel earlier in the year and applied for a corporate reorganization in Finland, the equivalent of Chapter 11, after its lenders declined to finance a restructuring on its own.
It had warned shareholders and lenders that its bankruptcy would lead to big losses, as well as a big environmental impact that would be difficult to manage.
News the company's corporate restructuring has been approved sent its shares soaring Friday, and the stock was the leading gainer on AIM, up 70% at 5.605 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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