Petra Diamonds Completes Restructuring
The diamond miner first announced the move in the fall after pulling itself off the market when it couldn’t find any buyers.
The miner owns four diamond mines: Cullinan, Finsch and Koffiefontein, all former De Beers Group mines in South Africa; and Williamson, a currently mothballed open-pit mine in Tanzania.
Then in October, the diamond miner said it was concluding the formal sale process as it hadn’t generated any viable offers and instead would enter a debt-for-equity restructuring.
That has involved its $650 million bond debt being replaced by $337 million in new notes—$30 million from existing debtholders and the rest converted into equity.
Debtholders now own 91 percent of the company and existing stakeholders’ share decreased to 9 percent.
The restructuring also included new governance arrangements and cash flow controls.
Petra also announced the appointment of Matthew Glowasky to the board as a non-executive director.
“The completion of the restructuring is a significant achievement for Petra, and I would like to thank our noteholders, lenders and shareholders for their continued support,” CEO Richard Duffy said.
“The restructuring will provide Petra with a stable and sustainable capital structure, significantly reduced financial burdens and greater liquidity, leaving us in a stronger position to focus on optimizing the value of our diversified asset base and to deliver growth for all our stakeholders.”
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