Atlas Iron’s debt restructure looks set to get the green light from its lenders on Friday following the receipt of predominantly positive proxies from the miner’s mostly US-based debt holders.
But one local lender, Commonwealth Bank of Australia, is said to be holding out on converting its debt for equity in the troubled iron ore miner.
If the deal is passed by lenders as expected, Atlas’ Term Loan B debt will be close to halved in exchange for the lenders, which includes CBA, gaining a 70 per cent chunk of Atlas’s equity.
From the AFR:
This will get its costs into the mid $40s so we’ve now reached the point where we’ll need to rerun sub-$40 before we lose a single seaborne tonne. When it ends, this rebound is going to have a terrible hangover.
