OZ stays ‘positive’ on loans

Suggestions that OZ Minerals may default on $140 million of debt before today's deadline are unfounded and premature, OZ relations manager Matthew Foran told MINING DAILY.

Suggestions that OZ Minerals may default on $140 million of debt before today’s deadline are unfounded and premature, OZ relations manager Matthew Foran told MINING DAILY.

The company has so far held “positive and constructive” talk with banks, but never expected any significant breakthroughs before the February 27 cut off, he said.

Media speculation over recent days has suggested talks to secure a loan extension had broken down and the banks would not roll over the debts.

Today’s deadline works according to European time with an extra 11 hours after Australia’s close of business, meaning the actual cut off time for the loan will be early morning Saturday, February 28.

Any announcement from OZ minerals is therefore not expected until Monday, March 2.

Speculation of a loan default yesterday sent OZ shares to a low of 40c before they recovered to 49.5c.

The recent $2.6 billion takeover bid from Minmetals saw the Chinese state-owned company pay 82.5c per share.

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