It’s not easy to kill these things off, from Fairfax:
Atlas Iron’s shareholders have given the troubled iron ore miner the chance to fight on by overwhelmingly backing a critical debt restructure proposal.
At a shareholder vote in Perth on Wednesday, an overwhelming 97.87 per cent of votes were cast in favour of a debt for equity swap that would deliver the company’s lenders 70 per cent of an enlarged equity base.
In return, Atlas’s Term Loan B debt would be cut from $US259.3 million to $US135 million, the maturity extended to April 2021 and the interest rate reduced.
Shareholders would be heavily diluted as a result of the deal but were warned by chairman Cheryl Edwardes the company risked voluntary administration if the deal was not implemented.
AdvertisementMs Edwardes told shareholders at the meeting Atlas would have a “sustainable future” if the deal was implemented.
From $90 break even a few years ago to mid $40s today. We need to see a $30 handle on iron ore before we’ll even kill the smallest of marginal cost producers.
Welcome to Series 7 of The Walking Dead.
