AGO 0.00% 4.5¢ atlas iron limited

Ann: Landmark Deal On Costs - Mining Back On, page-109

  1. 4,028 Posts.
    lightbulb Created with Sketch. 527
    Ashurst advises Atlas Iron Limited on innovative costs arrangements and proposed A$180m capital raising
    20 May 2015

    Ashurst is advising Atlas Iron Limited (Atlas) on an innovative costs arrangements and proposed A$180 million capital raising. Atlas is the fourth largest iron ore producer in Australia.
    On 7 April, Atlas requested a voluntary suspension of quotation of its shares on ASX, with immediate effect.  On 10 April, Atlas announced that it would progressively suspend its mining operations in response to the downward movement in iron ore prices. Before and since that announcement, Atlas and its advisers have been in active dialogue with key stakeholders, including Atlas' secured creditors/bondholders and its contractor group.  On 30 April, Atlas advised that mining would continue at certain of its operations, as a result of a substantial reduction in forecast cash costs achieved with the support of Atlas' key contractors.
    The transaction involves:
    • negotiation and entry into lower cost supply arrangements with Atlas' key contractors under a collaborative arrangement (Contractor Collaboration Agreement);
    • subscription for securities in Atlas by the key contractors and others (Contractor Issue) and proposed offers of securities under a capital raising to raise up to a further $150 million (together, Capital Raising); and
    • shareholder approval of the Capital Raising, and ongoing liaison with ASX in relation to seeking reinstatement to quotation of Atlas' shares.
    Atlas will seek additional subscriptions for up to A$150 million under the Capital Raising.  In combination with the Contractor Issue, this gives a total value of up to A$180 million. The negotiated cost reductions under the Contractor Collaboration Agreement are significant and underpin the ongoing financial viability of Atlas' operations.
    Ashurst has continued to advise Atlas on its obligations under its Term Loan B financing arrangements and on engagement with the bondholders and their advisers.
    Lead partner Antonella Pacitti said: "We are delighted to have been able to support Atlas throughout this very challenging period and look forward to working together for many years to come.  The drive of the Atlas team to deliver a better outcome for the Company and its stakeholders in a difficult market is impressive, and we are privileged to assist them to do so."
    Antonella was assisted by partners Roger Davies and Adam Conway, senior associates Elizabeth Hourigan and Richard Shi, lawyers Richard Tan, Amy Grondal and Olivia Blakiston, with graduate Alexandra Meade (Corporate); partner James Marshall and senior associate Ashleigh Kable (Restructuring and Special Situations); and partner Lucas Wilk and senior associate Leon Magistro (Disputes).
 
watchlist Created with Sketch. Add AGO (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.