(Alliance News) - Metals Exploration PLC on Thursday said it was not able to formally extend its standstill agreement with creditors due to a typhoon warning.
Shares in Metals Exploration sank 11% to 0.67 pence in London on Thursday afternoon.
The natural resources firm held negotiations with lenders HSBC and BNP Paribas, as well as major shareholders MTL Luxembourg SARL and Runruno Holdings Ltd, who hold its mezzanine debt. The negotiations were intended to result in a renewed standstill agreement.
However, agreements were halted on Wednesday because of a Typhoon 8 warning signal which caused Hong Kong businesses, including HSBC and BNP Paribas, to shut down.
While a formal extension was not achieved, the company did say that "all parties" did agree to the standstill agreement extension until further notice.
"The company intends to seek a formal extension to the standstill agreement as soon as practicable and a further announcement will be made in due course," said Metals Exploration.
Metals Exploration (MTL)