Woodbois Limited (LON:WBI), the timber and veneer group, said it has negotiated a debt restructuring in principle with the majority of its convertible bondholders.
Owners of 75% of US$30mln of outstanding bonds have agreed to convert into voting and non-voting shares and a zero-coupon convertible bond subject to equity funding also being carried out.
Discussions are underway as well with the holders of its internal trade finance facility (ITF), including Lombard Odier, which is also a substantial shareholder, the group added. Woodbois said the aim is to retire the ITF as part of the planned restructuring and fundraise.
Operationally, Woodbois said it wants to increase capacity at its veneer plant in Gabon to increase margins. Sawmill operations have restarted in Gabon while the group’s operations in Mozambique recommenced last month on a 50:50 profit share basis.
The company pointed out that it is ideally placed to scale up its operation as the current coronavirus crisis has exaggerated the scarcity of capital available to support the production cycle.
Woodbois' sustainability-driven model also increasingly fits in with the growing importance of ESG (Environmental, Social and Governance), the group said.