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Provider: Reuters Investment Profile
Provider: Reuters Investment Profile
Provider: GlobalData
Provider: Thomson Reuters Stock Report

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Northland Resources SA's Subsidiary Files for Reconstruction; Company Continues Work Towards Securing Long-Term Financing

Friday, 8 Feb 2013 03:30am EST 

Northland Resources SA announced that Board of Northland Resources AB (publ) has on February 8, 2013 filed for reconstruction with Lulea District Court. This is to give the Company time to finalize negotiations for long-term financial solution. Northland has withdrawn earlier offers regarding equity and bond issue in favor of discussions with potential investors to develop solution for its long-term funding. The financing will be used for Kaunisvaara Project. Northland invested over USD 900 million in the project. To ensure value of investments is preserved, the Company is in discussions with bondholders in outstanding bonds to reach a solution to secure continued operations in Kaunisvaara and shipping of iron ore concentrate via Narvik during reconstruction. To support reconstruction the Company is seeking support from bondholders and stakeholders for approximately USD 12 million. This would enable to continue full operation until March 4, 2013, by which time the Company aims to have a solution for long term funding. The reconstruction will include full salaries to employees of Northland Resources AB and operations will continue according to plans. During reconstruction, no payments can be made to suppliers for services or goods relating to period prior to date of filing for reconstruction. Suppliers will be paid for services and goods provided during reconstruction period. Northland Logistics AB and Northland Logistics AS will be indirectly affected by reconstruction.