Tag Archives: Term Loan

Business, Finance, Occupation & Industry

General Moly Announces Financing Update

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By Business Wirevia The Motley Fool

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General Moly Announces Financing Update

LAKEWOOD, Colo.–(BUSINESS WIRE)– General Moly, Inc. (the “Company”) (NYSE MKT: GMO)(TSX: GMO), a U.S.-based molybdenum mineral development, exploration and mining company has been informed that legal counsel has suspended work on the $665 million Chinese sourced Term Loan that is currently being negotiated with China Development Bank (“CDB”) for the development of the Mt. Hope Project until further notice. This suspension of activities relates to media reports that Mr. Liu Han, Chairman of Sichuan Hanlong Group (“Hanlong”) has reportedly been detained by Chinese authorities. Hanlong or an affiliate is obligated to arrange and guarantee the Term Loan, throughout its life.

General Moly is seeking clarification from Hanlong as to the implications for the Company and will advise the market should these enquiries render any relevant information.

Bruce D. Hansen, Chief Executive Officer of General Moly, said “We have been making good progress negotiating the Term Loan and are disappointed that this work has been suspended until further clarification is received from Hanlong. We hope to re-establish Term Loan negotiations with Hanlong and CDB in the near-term, but will concurrently assess other financing alternatives.”

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General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and the Toronto Stock Exchange under the symbol GMO. Our primary asset, our interest in the Mt. Hope Project located in central Nevada, is considered one of the world’s largest and highest grade molybdenum deposits. Combined with our second molybdenum property, the Liberty project that is also located in central Nevada, our goal is to become the largest pure play primary molybdenum producer in the world. For more information on the Company, please visit our website at http://www.generalmoly.com.

Forward-Looking Statements

Statements herein that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Rotech Healthcare Reaches Agreement in Principle with Its Major Debtholders on Debt Reduction and Re

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By Business Wirevia The Motley Fool

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Rotech Healthcare Reaches Agreement in Principle with Its Major Debtholders on Debt Reduction and Restructuring

ORLANDO, Fla.–(BUSINESS WIRE)– Rotech Healthcare Inc. (OTCBB: ROHI.OB) announced today that the Company and Consenting Holders holding in the aggregate a majority of the outstanding principal amount of Rotech’s 10.5% Senior Second Lien Notes have reached an agreement in principle to restructure and recapitalize the Company’s capital structure. The Company believes the agreement in principle presents an effective means to eliminate substantial secured legacy debt, which has burdened the Company for more than a decade.

Under the agreement in principle with the Consenting Noteholders, Rotech expects to complete the restructuring and recapitalization of its capital structure through a pre-arranged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Rotech anticipates filing its consensual plan and petitions in the coming weeks. Because of the agreement in principle, the entire process is expected to be completed within 90 to 120 days after commencement.

Under the contemplated debt restructuring:

  • The holders of the $23.5 million Term Loan would be paid in full;
  • The $230 million of 10.75% First Lien Notes would be amended and the maturity potentially extended;
  • The $290 million in 10.5% Second Lien Notes would be converted into 100% of the common equity of the reorganized Company, thereby eliminating this tranche of secured debt;
  • All of the Company’s outstanding shares would receive a distribution of 10 cents per share (provided that the total amount paid on account of such interests does not exceed $2.62 million) and then be cancelled; and
  • Trade creditors and vendors would be paid in full in the ordinary course of business as long as they maintain or reinstate existing payment terms.

“After careful planning and consideration, we are pleased to have reached this major milestone of substantially reducing our debt,” said Steven P. Alsene, President and Chief Executive Officer. “The Company has struggled for years under the debt burden placed on it when it was spun off from its former parent company in 2002. Since that time, dramatic reimbursement reductions have made it essential that we reduce our debt to a manageable level. With this debt reduction, we believe we will be able to further take advantage of our inherent strengths to …read more
Source: FULL ARTICLE at DailyFinance