Financially beleaguered Breakwater Resources (TSE) is continuing negotiations with an undisclosed party aimed at reaching an agreement for a restructuring plan.
The company, which has reported heavy losses for the past several years, recently announced it could not pay the interest due on Jan. 1, 1992, to the holders of its Swiss bonds.
The restructuring plan contemplates an infusion of equity to Breakwater, but this would be conditional upon the agreement of some of its creditors to convert their debt into equity.
Breakwater also reported that a creditor had agreed to extend by 90 days a US$2.5-million note that was due Jan. 2, 1992.
More detailed disclosure of the restructuring plan is expected to be released once negotiations are completed.
Breakwater’s financial problems are related to a recent strategic plan aimed at having the company become a sizable zinc producer. In 1990 and 1991, the company was forced to close two of its mines because of operating problems and low zinc prices.
Be the first to comment on "Breakwater works at restructuring"