Paladin Energy reports loss & alternative restructure proposal

Company News

by Jessica Amir

Paladin Energy Limited (ASX:PDN) reported a gross loss of US$22.2 million for the nine months to 31 March 2017, compared to its gross profit of US$25.7 million for the prior corresponding period.

The uranium production company’s EBITDA dropped US$11.1 million to US$5.1 million for the nine months to 31 March 2017.

It comes as Paladin announced a number of holders of its convertible bonds agreed to support its alternative restructure proposal, where CNNC will buy Paladin’s 75% stake in the Langer Heinrich Mine for US$500 million.

As part of the alternative proposal, the net proceeds will be distributed between its Long Term Supply Contract (LTSE) with Electricie de France S.A (EDF) and holders of Paladin’s Existing Convertible Notes.

Paladin says it will also materially reduce its debt obligations as part of the proposal.

Shares in Paladin Energy Limited (ASX:PDN) are due to come out of suspension today. It last traded flat at 10.5 cents.

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