Paladin Energy (ASX:PDN, TSX:PDN) continues to receive support from its stakeholders as it defends its 75% interest in the flagship Langer Heinrich uranium mine, located in Namibia.
Recently, Chinese heavyweight CNNC Overseas Uranium Holdings Ltd claimed an event of default has occurred allowing them to potentially exercise an option to purchase Paladin’s 75% stake.
In an act of support for Paladin, its creditors have made sacrifices to allow Paladin to fight this claim by CNNC.
Certain bondholders have agreed to defer forthcoming maturity dates and interest payments.
Furthermore, the waiver provided by Nedbank was due to lapse on 31 March 2017 however, Nedbank has agreed to extend the waiver until 30 June 2017, subject to formal documentation which is now being agreed.
Paladin will continue to provide its stakeholders with material updates as soon as it is in a position to do so.
The company’s shares will remain in suspension until Paladin has dealt with these material developments that affect its ability to successfully progress the restructure proposal.
Currently, Paladin has executed standstill agreements with bondholders representing 75.1% of holders of 2017 convertible bonds and 86.6% of holders of 2020 convertible bonds.
The company has taken significant steps to progress the restructure proposal in order to achieve a successful solvent restructure, seeking to preserve value for all stakeholders.