Horizonte Minerals plc has been granted a 60-day stay period to negotiate indebtedness and work on the Araguaia nickel project restructuring plan for creditors’ approval.
FUNDING
The Brazilian precautionary measure gives the company’s local operating subsidiary a longer period to negotiate directly with creditors or via mediation, while aiming to protect its cash in the short term.
Horizonte said that this would allow current negotiations to continue, while potentially avoiding a judicial reorganisation proceeding by the subsidiary in Brazil.
The company also continues to work closely with its major shareholders and senior lenders on a full funding solution targeted for the end of Q2 2024.
Senior lenders agreed to waivers including the deferral of interest payments until the 29 March 2024, but there was guarantee of further extensions.
Horizonte remains a guarantor of its subsidiary’s debt and might still also need to consider applying for protective measures.