August 11, 2022

Russian miner Petropavlovsk weighs hearth sale and warns it might not have the ability to refinance debt because it continues to battle with sanctions fallout

  • Warning it might be ‘very difficult’ to repay a $304m bond due in November
  • Firm is contemplating sale of the ‘whole pursuits in its working subsidiaries’ 
  • Petropavlovsk’s most important lender, Gazprombank, has had its property frozen by Britain 

Russian gold miner Petropavlovsk has warned traders could possibly be worn out because it struggles to refinance its debt amid sanctions towards Moscow.

The corporate mentioned it might be ‘very difficult’ to repay a $304million convertible bond due in November due to Western sanctions on Russia following its invasion of Ukraine.

Petropavlovsk warned it’s ‘not at the moment clear what return, if any, could also be secured for shareholders or the holders of the Bonds or Notes on account of this course of’. 

Petropavlovsk mentioned it was ‘not at the moment clear what return, if any’ mat be secured for traders

Petropavlovsk’s most important lender, Gazprombank, has had its property frozen by Britain, and the gold producer mentioned it had ‘restricted’ money reserves exterior Russia. 

‘There are authorized restrictions in place in Russia which restrict the group’s potential to switch money out of Russia,’ the agency added. 

As strain mounts, the group mentioned it had appointed advisors to discover doable choices, together with the sale of the ‘whole pursuits in its working subsidiaries as quickly as virtually doable’. 

See also  Morrisons is being dragged down by debt, credit standing company warns

Final month, Petropavlovsk revealed it had been unable to pay curiosity on a mortgage with Gazprombank resulting from sanctions.

In the present day, it mentioned ‘rules’ meant it was additionally unable to pay the rouble equal of round $9.5million debt it has with Gazprombank. 

Petropavlovsk shares, that are nonetheless listed in London, tumbled 21 per cent to simply 2.37p.

Final month it was ejected from all FTSE indices together with different Russian-focused corporations, together with Evraz, Polymetal Worldwide and property group Raven.

The businesses have been barred from holding positions on the FTSE 100, FTSE 250, FTSE 350 and FTSE All-Share Index.

However critics mentioned the transfer didn’t go far sufficient because the shares are nonetheless listed on the London Inventory Change regardless of their exclusion from the indices.