Image credit: Petra Diamonds
“…the company is pleased to announce that the scheme conditions effective date has occurred,” it said in a brief statement.
“Accordingly, implementation of the restructuring has commenced and it is expected that the restructuring effective date will occur on Wednesday 10 March 2021.”
Petra started a strategic review of its capital structure last year to find ways to clear a senior secured loan note of $650-million, which is due for repayment by May 1, 2022.
Key features of the restructuring include a partial reinstatement of the notes debt and the contribution by holders of the existing notes of $30 million in new money, each to take the form of new senior secured second-lien notes.
It is expected that the new notes will amount to about $337 million.
The restructuring will also see the conversion of the remainder of the notes debt into equity, which will result in the noteholders holding 91% of the enlarged share capital of Petra.
Petra’s investors ratified plans to restructure the business last January.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
