Cokal expects Platinum restructuring won?t affect debt conversion deal
Friday, December 2 2016 - 03:37 AM WIB
In an update to a debt conversion agreement with Platinum Partners announced on July 22, 2016, ASX-listed coking coal company Cokal Ltd said on Friday that it is working together with Platinum to replace its existing security with a direct royalty security over the IUP licenses to specifically secure the royalty.
?The company is awaiting feedback from Platinum on these matters,? Cokal said in a statement. Once the draft royalty agreement and security arrangements are in agreed form, the company said it will consult with ASX in relation to any listing rule requirements, and, subject to the outcomes of those consultations, take the necessary steps to satisfy those requirements and complete the debt restructure.
The Platinum group is undertaking an internal restructure of its affairs and Cokal said it has recently become aware that, as a result of this internal restructuring, Platinum Partners Value Arbitrage Fund, LP (PPVA) was placed into liquidation on or about August 25, 2016.
Cokal said that it does not expect this event or the wider Platinum group restructure to have a material impact on the announced debt conversion.
The July debt conversion agreement was expressed to be entered into by PPVA and its associated entities. PPVA currently does not hold any Cokal debt.
The Platinum loan is currently held by Northrock Financial LLC, a subsidiary of Platinum Partners Credit Opportunities Fund, LP (PPCO). Both Northrock and PPCO are in good standing and are unrelated to PPVA.
Both those entities have recently affirmed their commitment to finalizing and implementing the debt conversion agreement on a timely basis subject to and in accordance with its terms.
?Platinum and Cokal continue to collaborate with each other and all stakeholders to finalise and complete the debt conversion agreement as expeditiously as possible,? Cokal said.
Cokal on July 22 reached an agreement with Platinum Partners Value Arbitrage Fund, LP to convert approximately US$15 million of loans owed by Cokal to various funds managed by Platinum or its affiliates.
Editing by Reiner Simanjuntak