Irish company Kenmare Resources has reached an agreement to restructure its debt to fund exploration of heavy sands deposits in Moma, Mozambique, the Irish Times reported.
The company was due to pay back US$165 million in subordinated debt by August 2015, the newspaper said adding that restructuring the debt had taken pressure of the company’s share price.
Under the new arrangement, 50 per cent of the debt will be paid back in regular instalments between August 2015 and August 2019, when payment of the balance is due, the newspaper said.
The company’s chief executive, Michael Carvill, said the deal took “huge pressure off the company,” as “commodities go in cycles, and they are in a serious downcycle at the moment. Consequently we haven’t been building up the cash pile as quickly as had previously been contemplated.”
Carvill also said that if the company managed to generate higher cash flow it could use some of that cash to make the final payment ahead of time. (macauhub)