OZ fights for extension

OZ Minerals has announced that the company, in requesting an extension on loan repayments, is simply exercising an option agreed upon with its lenders.

OZ Minerals has announced that the company, in requesting an extension on loan repayments, is simply exercising an option agreed upon with its lenders.

“There was a provision in the company’s loan agreements to the effect that the company may request from the lenders an extension to the refinancing date,” OZ Minerals said in a recent statement.

OZ Minerals last week requested an extension until December 29 on loan repayments totaling US$560 million.

The loans are referred to as facilities A and B.

The company has met the terms and conditions in order to request an extension, the company said.

“The lenders could not reasonably withhold their consent to any such request for extension so long as the company had used its best endeavours to refinance those facilities,” the company said.

“This provision, the positive relationship the company had with its lenders and good progress which the company had already made at that time towards completion of the refinancing negotiations, caused the company to form the view that facility A and facility B would not be subject to repayment in the short-term.”

OZ Minerals reaffirmed in the statement that is not defaulting on the loans.

“OZ Minerals also confirms that it is not in payment default or arrears under any of its financing facilities,” the company said.

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