Anaconda Secures Time To Mend Debt
Sydney Morning Herald
Thursday June 6, 2002
Anaconda Nickel has secured a rollover of loan repayments until the end of June, but has still to finalise a life-saving debt restructure with US bondholders owed $US420 million ($734 million).
Anaconda said yesterday that it anticipated negotiations with secured creditors would continue for an extended period, with further meetings scheduled for the middle of this month.
``However, the timing for final negotiations with Murrin Murrin Holdings' secured creditors and the ultimate outcome of those negotiations remains uncertain," the company said.
The update, the second in as many weeks, came as Anaconda shares continued to languish at just 35c, well down from their 52-week high of $2.05.
But Anaconda attempted to take some heat off its share price by continuing to point to the upcoming outcome of arbitration on its $1.3 billion dispute with Fluor Daniel, the designer of the Murrin Murrin nickel mine in Western Australia.
The company is suing Fluor for breach of contract, claiming defective design and construction of Murrin Murrin and for late completion and slower ramp-up of the plant.
Fluor is counter-suing for the return of money provided as security for performance of its contractual obligations and payments of money alleged to be due on outstanding invoices.
``An interim award is expected from the arbitration tribunal in July," Anaconda said yesterday.
``The company continues to have a reasonable expectation of a favourable outcome from the arbitration process, although this cannot be predicated with certainty."
Anaconda, which posted a first half net loss of $457.5 million, is hoping to convince the bondholders to support Anaconda for another 18 months, enabling the company to reach full production capacity at Murrin Murrin.
© 2002 Sydney Morning Herald
Share This