Petropavlovsk PLC Update on Negotiations re IRC's ICBC Facility (0433P)
May 23 2018 - 5:26AM
UK Regulatory
TIDMPOG
RNS Number : 0433P
Petropavlovsk PLC
23 May 2018
23 May 2018
Update on Negotiations Regarding IRC's ICBC Facility
Further to Petropavlovsk PLC's ("Petropavlovsk", "the Company"
or "the Group") statement in its 2017 full year announcement on 28
March 2018, the Company today provides an update on the
negotiations involving the Company, IRC Limited ("IRC") and the
Industrial and Commercial Bank of China ("ICBC") in relation to the
US$340 million project finance facility dated 13 December 2010
between Kimkano-Sutarsky Mining and Beneficiation Plant LLC
("K&S", a wholly owned subsidiary of IRC) and ICBC (the "ICBC
Facility"). Petropavlovsk has guaranteed the outstanding amounts
K&S owes to ICBC, with total loan principal as at 31 March 2018
amounting to US$234 million.
Under the ICBC Facility, a payment of US$35.16m, including
principal and interest, is due from K&S to ICBC on 20 June
2018. As previously announced, IRC, together with Petropavlovsk,
have approached ICBC to request an amendment of the repayment
schedule and to obtain waivers in respect of obligations to comply
with certain financial covenants. IRC has also requested ICBC to
waive the obligation to maintain certain cash deposits with ICBC.
The negotiations with ICBC are continuing.
As no agreement has yet been reached with ICBC, both IRC and
Petropavlovsk are pursuing a number of options to ensure the
continued good standing of the ICBC Facility. These options include
our previously announced discussions regarding the full refinancing
of the ICBC facility with a leading Russian lender, which are now
well progressed. The Company is also exploring a potential
short-term advance to IRC to fund a portion of the June debt
obligations if necessary. The primary objective of these
discussions, as well as our pursuit of other options to ensure the
continued good standing of the ICBC Facility, is to protect the
value of our investment in IRC in the interests of all of
Petropavlovsk's stakeholders.
As previously announced, if a missed repayment under debt or
guarantee obligations in respect of the ICBC Facility occurs, or
covenant requirements are not met, this would result in a default
under the ICBC Facility which, through cross-defaults and
cross-accelerations, could cause all of the Group's debt
arrangements to become repayable on demand.
The Company will continue to update the market in due
course.
Enquiries
For more information, please visit www.petropavlovsk.net and
www.ircgroup.com.hk or contact:
Petropavlovsk PLC Buchanan
Alya Samokhvalova Bobby Morse
Grace Hanratty Anna Michniewicz
+44 (0) 20 7201 8900 +44 (0) 207 466 5000
TeamIR@petropavlovsk.net POG@buchanan.uk.com
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Cautionary note on forward-looking statements
This release may include statements that are, or may be deemed
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END
MSCFKNDBKBKDQPB
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