Echo Bay defers payments

Echo Bay Mines (ECO-X) will defer cash payments on US$100 million in capital securities.

The second semiannual payment on the securities, which were issued in March of last year, is due in October and Echo Bay will again evaluate whether to postpone payment. The agreement allows the company to defer for up to five years with interest on the securities accruing at 12%, 1% over the set annual rate. The company cannot pay dividends during that period.

The securities, due 2027, are unsecured, subordinated and junior in right of payment to all senior debts in the company. The proceeds were used for debt repayment and general corporate purposes.