Western Australian based uranium company Paladin Energy has appointed administrators after French offtake partner Electricite de France (EDF) demanded a loan repayment of $US277 million ($361 million) by July 10.
This comes after a deal the companies entered in 2012, where EDF provided Paladin a $US200 million prepayment to secure a supply of uranium between 2019 and 2024, the Australian Financial Review reports.
EDF then sought more security over the payment, and in June 2017 gave Paladin 30 days to pay back the $200 million as well as an additional $US77 million in interest.
Paladin requested more time to make the payment, however EDF refused to sign a standstill agreement.
Paladin said after receiving the demand from EDF, the boards of the relevant companies met and decided to appoint administrators; selecting Matthew Woods, Hayden White and Gayle Dickerson from KPMG.
It said its management and directors are still working with the administrators on a restructure and recapitalisation of the company.
“The administrators will immediately undertake a financial and operational assessment of the relevant companies and intend to continue to operate the company on a business as usual basis until further notice,” Paladin said.