firb exetnds 90 days, page-57

Important read. Includes comment from OZ about FIRB delay, bank extension:

UPDATE: OZ Minerals Faces Delay On Minmetals Bid Decision
(Adds comment from OZ Minerals and Minmetals)
By Alex Wilson Of DOW JONES NEWSWIRES MELBOURNE -(Dow Jones)-

OZ Minerals Ltd. (OZL.AU) faces a nervous wait of up to 90 days to see if the Australian Government will approve a A$2.6 billion Chinese takeover offer after a review of the deal was extended Monday.

The debt laden miner has warned it risks being placed into receivership if a A$2.6 billion takeover offer from China Minmetals Nonferrous Metals Co. fails, and it must now convince its banks to grant it an extension on the refinancing of more than A$1.1 billion in loans due by the end of the month.

OZ said Australia's Foreign Investment Review Board has advised that its review of the deal will be extended by 90 days from March 24.

The Minmetals bid for OZ is one of a recent flurry of offers from Chinese Government-backed entities for Australian mining assets, including Aluminum Corp. of China's planned US$19.5 billion investment in Rio Tinto Ltd. (RTP), currently being considered for approval by the Australian Government.

OZ Executive General Manager Business Support Bruce Loveday said the extension wasn't the best outcome for the company given the deadline it faces on its loans at the end of March.

Loveday said there was a risk that the company could go into receivership if the Minmetals deal was knocked back and that the company had conveyed the importance of a quick decision to FIRB.

"We have got a critical date at the end of the month and we were looking to get a result by the end of the month," he told Dow Jones Newswires.

"This obviously makes it a bit less likely, but it is not necessarily the case that FIRB will take the full 90 days and we would hope we can get resolution as soon as practical."

A spokesman for Minmetals noted the extension by FIRB, but declined to comment on the ramifications for the deal.
"The consideration of this matter is at the government's discretion and we respect the government's process but will not comment further," he said.

OZ had already begun negotiations with its lenders on an extension to Sept. 15, which is two weeks after the expiry date for the Minmetals offer, and these talks are ongoing.
Loveday said OZ is now talking to its banks about the FIRB extension, and believes it is in their interests to give Minmetals every chance of completing its deal, which would see the Chinese group repay all OZ's outstanding debts.

"It's not an ideal decision for the point of view of the banks," he said.

"But we think it is still in their interests and obviously in our interest that they do wait, but it's a discussion that's going on now."

OZ has a total debt load of A$1.3 billion with A$1.1 billion due at the end of March.

Loveday said OZ remains in talks with buyers on the sale of its Martabe and Golden Grove assets.