Gascoyne Resources’ (ASX:GCY) Recapitalisation Retains Lender Support
Gascoyne Resources’ (GCY) senior lenders will continue supporting the company’s recapitalisation by agreeing to exclusivity arrangements
The company’s Deed Administrators have until September 12, 2020, to recapitalise and relist Gascoyne, and fully repay the lenders
Until September 12, the lenders will not accept or enter into any transaction which may jeopardise completing the Gascoyne DOCA
From July 1 to September 30, the company will make monthly repayments of $1 million to the senior lender’s facility
Gascoyne Resources shares remain suspended from quotation, last trading for 3.9 cents in 2019
Gascoyne Resources’ (GCY) senior lenders will continue supporting the company’s recapitalisation by entering into exclusivity arrangements.
At a second meeting on June 25, 2020, creditors of Gascoyne approved a broader recapitalisation and relisting plan for the company. These lender arrangements will support this plan, and provide the market with greater certainty about senior debt during the recapitalisation phase.
The exclusivity arrangements with the company’s senior lenders will last until September 12, 2020. Gascoyne’s Deed Administrators have until this date to complete the proposed recapitalisation and relisting of the company. They will also have until then to fully repay the senior lenders all amounts which are currently owed to them.
The lenders have agreed that they will not accept or enter, or offer and agree to accept or enter into any transaction which may jeopardise the completion of the Gascoyne deed of company arrangement (DOCA). This agreement will also last until September 12, 2020, at which time the lenders may accept or enter into such a transaction.
In order to reimburse the senior lenders what is owed, Gascoyne has organised a repayment scheme. Starting from July 1, the company will begin making monthly repayments of $1 million per month to the Senior Lenders facility. This will continue up until the closing date of September 30, 2020.
In the coming weeks, the company will issue the necessary documents to advance the broader recapitalisation and relisting plan. This will include a shareholder notice of meeting and prospectus.
Gascoyne Resources shares remain suspended from quotation, last trading for 3.9 cents in 2019.
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