LONDON (Alliance News) - Frontera Resources Corp said Thursday it has restructured loan notes issued by its subsidiary company, which led to court proceedings against the company over their repayment.
In July, Texas-based Frontera said it entered court proceedings over USD30.0 million in convertible loan notes issued by its subsidiary Frontera Resources Holdings LLC, which subsequently went into liquidation and claimed against its parent company for the repayment of the notes.
On Thursday, Frontera said it has restructured the 10% notes issued by the subsidiary by exchanging them for new notes, with the legal proceedings set to be dismissed.
The new notes are issued by the company's subsidiary, Frontera International Corp, with a 10% interest rate in cash or a 12% rate if paid in-kind with additional notes, and are not convertible to equity. Their aggregate face value is USD30.1 million, and they have a maturity date of August 1, 2016.
"We are very pleased to have successfully concluded this important restructuring of the company's debt," said Steve Nicandros, chairman and chief executive officer of Frontera.
By Adam Clark; adamclark@alliancenews.com
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