Horizonte Minerals plc has entered administration and suspended trading after failing to secure full financing for its Araguaia nickel project in Brazil.
INJUNCTION
The company’s shares stopped trading on AIM today and TSX at 6pm on 15 May. Its nominated adviser Peel Hunt LLP resigned, with Horizonte having “no current intention” of appointing a replacement.
Chad Griffin and Geoff Rowley of FRP Advisory were appointed administrators following Horizonte’s extended discussions and deadlines with existing and potential investors on possible financing of the 87% rise in costs for Araguaia.
“The joint administrators are now evaluating the company’s position to achieve the best possible recovery for the company’s creditors,” said Horizonte.
“Discussions between the joint administrators, the subsidiary directors and key stakeholders on alternative scenarios will continue to be held during the administration with a view to a potential restructuring solution that protects the company’s subsidiaries, which are not being placed into administration
The injunction, or Brazilian precautionary measure granted to the company’s Brazilian subsidiary, was due to end on 15 May but will now end on 24 May.
The measure provides a 60-day stay against enforcement of senior lenders and creditors’ debt and certain security, in order to negotiate a restructuring plan subject to creditors’ approval.
Horizonte said its results for year ending 31 December 2023 will not be released.
If a new nominated adviser is not appointed within one month from Peel Hunt’s resignation, the company’s shares will be cancelled to trading.
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