NEW YORK First Nickel
Inc. has completed its debt restructuring, bypassing the usual
50- to 60-day waiting period to gain shareholder approval due
to the companys "serious financial difficulty."
The company recently announced a
refinancing plan involving an increase in the principal amount
of its revolving credit facility with the Bank of Nova Scotia
(BNS) to $15 million from $10 million, as well as extending the
maturity date to March 30, 2015 (
amm.com, April 1). The company also has extended
the maturity dates of its loan agreements with Resource Capital
Fund IV LP, Resource Capital Fund V LP and a fund managed by
West Face Capital Inc.
First Nickel "intends to utilize
the BNS facility primarily to manage working capital and does
not expect to fully draw down the BNS facility," the company
said April 8.
"Under the applicable Toronto
Stock Exchange (TSX) rules, the refinancing would have normally
required independent shareholder approval, which would have
entailed a 50- to 60-day process. As the companys
liquidity needs did not allow sufficient time to conduct a
shareholder vote, (First Nickel) applied to the TSX for an
exemption from the shareholder approval requirement on the
basis that the company was in serious financial difficulty,"
the company said.
The Toronto-based company
recently announced a Canadian $36.33-million ($35.81-million)
net loss for 2012 (
amm.com, April 3).