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TORONTO, Cananda - Jaguar Mining Inc. has obtained an initial order under the Companies' Creditors Arrangement Act to begin a restructuring and recapitalization plan.
The gold miner, with operations in Brazil, said Monday that it hopes to reduce its debt to $54 million from $323 million and emerge with $50 million of new equity backstopped by current holders of its convertible notes.
The company says the recapitalization has the support of holders of about 93 per cent of the aggregate principal amount of the company's 4.5 per cent unsecured convertible notes due Nov. 1 and 5.5 per cent notes due March 31, 2016.
Jaguar said a meeting of unsecured creditors to vote on the plan has been scheduled for Jan. 28, adding that it hopes to complete the recapitalization by mid-February.
"The CCAA process will allow us the time and stability required to implement the recapitalization, while continuing our normal day-to-day operations," CEO David Petroff said in a statement.
"We believe that a court supervised restructuring of Jaguar's business is the best method available to secure its future. We are moving forward with our restructuring and refinancing objectives to strengthen the company and allow it to pursue all of its strategic alternatives."
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