3rd Apr 2018 10:23
Shares in Weatherly International were down 33% at
Weatherly has entered into a further amendment and restatement agreement in relation to its existing deal with Orion.
The first repayment of facility B, previously due on March 31 is now due on June 30 and payable quarterly until December 31, 2019, with a final payment due on February 28, 2020.
The facility B final maturity date remains unchanged at February 28, 2020. Facility B will be repayable in eight equal repayments of capital and accrued interest of
Repayment of capital and accrued interest of
In addition, the amendment and restatement agreement introduces a new clause that gives Orion approval rights on expenditure outside of the board's comprehensive agreed budget and includes several amendments to existing clauses that, over time, will result in the Weatherly having reduced flexibility on cash generated from copper sold to Orion, the company's sole customer, via a cash sweep mechanism and tightened offtake credit arrangements.
Orion has the right to buy up to 700 tonnes of unhedged cathode each month from Weatherly until April 30 at a price of
Weatherly has made no further drawdown on the
The company and its subsidiaries are unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. Weatherly continues to positively engage with Orion on the subject.
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Weatherly International Plc