Dona Ferentes
Pengurus pengatur
- Joined
- 11 January 2016
- Posts
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death by a thousand cuts..
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Key Points
• Group 6 Metals has reached agreement with its secured lenders and certain other major creditors on a recapitalisation plan, aimed at significantly reducing debt, strengthening the balance sheet, lowering debt servicing levels, and providing necessary liquidity to review, plan and execute an operational improvement plan.
• The recapitalisation plan is also aimed at providing funding to support extensive capital improvements on the processing plant necessary to drive profitable operations.
• The plan includes changes to the existing board and executive management team.
• Senior secured lenders and subordinated lenders continue to support the ongoing operations of the company.
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Key Points
• The senior lenders to Group 6 Metals have agreed a Recapitalisation Plan, aimed at significantly reducing debt, strengthening the balance sheet, lowering funding costs, and providing necessary liquidity to determine and execute a business transformation plan.
• The Recapitalisation Plan will address unsustainable leverage and significantly reduce total debt, with circa A$67.2 million of debt and trade creditors being converted into equity.
• Senior lenders, subordinated lenders and certain unsecured creditors’ post-recapitalisation ownership of issued ordinary shares is expected to be circa 97.02%.
• Strong support has been received from the Tasmanian Government for the Plan.
• The Recapitalisation Plan provides an additional A$23.75m in funding from the existing senior lenders, to support a complete review of the business, and the implementation of a transformation plan including extensive capital improvements to the processing plant, which should lead to a cash flow positive and profitable operation.
• It is anticipated that existing shareholders will be able to participate in the overall recapitalisation as soon as it is practical for the company to offer an opportunity to do so.
• The proposed transaction will be subject to regulatory and shareholder approvals, with completion expected early in 2025.
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G6M REACHES AGREEMENT ON RECAPITALISATION PLAN
Key Points
• Group 6 Metals has reached agreement with its secured lenders and certain other major creditors on a recapitalisation plan, aimed at significantly reducing debt, strengthening the balance sheet, lowering debt servicing levels, and providing necessary liquidity to review, plan and execute an operational improvement plan.
• The recapitalisation plan is also aimed at providing funding to support extensive capital improvements on the processing plant necessary to drive profitable operations.
• The plan includes changes to the existing board and executive management team.
• Senior secured lenders and subordinated lenders continue to support the ongoing operations of the company.
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Enters Transformation Phase
- Reaches Agreement with Lenders for Substantial RecapitalisationKey Points
• The senior lenders to Group 6 Metals have agreed a Recapitalisation Plan, aimed at significantly reducing debt, strengthening the balance sheet, lowering funding costs, and providing necessary liquidity to determine and execute a business transformation plan.
• The Recapitalisation Plan will address unsustainable leverage and significantly reduce total debt, with circa A$67.2 million of debt and trade creditors being converted into equity.
• Senior lenders, subordinated lenders and certain unsecured creditors’ post-recapitalisation ownership of issued ordinary shares is expected to be circa 97.02%.
• Strong support has been received from the Tasmanian Government for the Plan.
• The Recapitalisation Plan provides an additional A$23.75m in funding from the existing senior lenders, to support a complete review of the business, and the implementation of a transformation plan including extensive capital improvements to the processing plant, which should lead to a cash flow positive and profitable operation.
• It is anticipated that existing shareholders will be able to participate in the overall recapitalisation as soon as it is practical for the company to offer an opportunity to do so.
• The proposed transaction will be subject to regulatory and shareholder approvals, with completion expected early in 2025.