Kate Haycock --MINING NEWS -- Friday, 27 March 2009
OZ MINERALS has gone into a trading halt this morning ahead of its March 31 debt deadline, with fears in the market the company may not win the debt refinancing extension it needs to survive.
The company owes $A1.3 billion, due to be repaid or refinanced on Tuesday next week.
However, OZ remains in talks with its financiers to extend the refinancing date until September 15, two weeks after the deadline for the execution of the scheme implementation arrangement with Chinese company Minmetals.
Reports from Reuters suggest the company will win a refinancing extension for another month but may not gain any additional funds.
While holding off on debt refinancing is crucial for the company now, OZ’s survival in the medium term depends on the $2.6 billion takeover offer from Minmetals. The offer is currently being considered by Australia’s Foreign Investment Review Board, which on Tuesday this week extended the time it would take to review the bid.
FIRB extended the deadline by 90 days, meaning a decision may not be made until mid-June.
Shares in OZ were last trading at 55.5c.
OZL Price at posting:
55.5¢ Sentiment: None Disclosure: Not Held
