Anaconda To Reach Agreement Over Debt

Anaconda Nickel Ltd said secured creditors of its wholly-owned Murrin Murrin Holdings Pty Ltd have agreed to extend the existing forebearance agreement until at least Aug 15, 2002 to allow the finalisation of negotiations to restructure the debt of Murrin Murrin Holdings

Anaconda is considering implementing a renounceable rights issue to raise additional capital for this restructuring of debt and re-capitalisation of the company to proceed.

Glencore has put a draft proposal to the Anaconda board to underwrite a rights issue.

However, as the discussions continue with the secured creditors and other potential underwriters, any proposal cannot be considered further until these discussions have been completed.

Once agreements have been finalised, Anaconda will initiate the process of obtaining approvals from statutory and regulatory authorities as well as from shareholders at an EGM to be held in coming months.

Anaconda said it expects that the restructuring of debt and re-capitalisation of the group may not be completed for an extended period of time.

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