Search
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.


Atlantic lands funds to aid recovery after fire

Feb 19, 2014 | 04:46 PM | Daniel Fitzgerald

Tags  Atlantic, ferrovanadium, Midwest Vanadium, MVPL, Windimurra operations, fire, Droxford International, financing Standard and Poor's


NEW YORK — Atlantic Ltd. has reached an agreement on an Australian $32.6-million ($29.4-million) funding facility aimed at helping the vanadium producer recover from liquidity issues and a fire at its Windimurra facility in Western Australia.

Singapore-based Droxford International Ltd., the company’s largest shareholder, will provide the funding.

Under the new financing proposal, A$3.6 million ($3.3 million) will be released to Atlantic subsidiary Midwest Vanadium Pty Ltd. (MVPL) "in the very near term to allow it to meet immediate commitments," the company said in a statement Feb. 19.

The new financing proposal will also involve a standstill on MVPL’s interest reserve account and interest payment obligations to holders of its senior secured notes until at least August 2014.

Perth, Australia-based Atlantic entered financing discussions with Droxford and the noteholders after MVPL failed to make the scheduled February interest payment on its senior secured notes (amm.com, Feb. 18).

The company revealed this week that it could take nine months to repair the damage from the Windimurra fire and return to its previous production rate.

Last week, ratings agency Standard & Poor’s Ratings Services lowered MVPL’s rating to "CCC-" from "CCC" and placed the company on CreditWatch, citing "weak liquidity and lower-than-expected cash flows."




Latest Pricing Trends Year Over Year

Poll

Some unions have benefitted from recently enacted rules intended to speed up the election process. If your business employs or otherwise works with companies that employ unions, what is your opinion on the new rules?

I disapprove, this will hurt my business
I disapprove, this could hurt my business in the future
Neutral, this will have no impact on business
I approve, this could or will benefit workers and/or my business
I approve, though this will not likely benefit my business


View previous results