In late April, Atlas Iron requested a
three-week extension to a voluntary
trading suspension as it continued to
forge a path forward with creditors in
the face of a weakening iron ore price.
Reports had emerged at the time about
some of Atlas’ contractors — including
McAleese Transport, Maca and Qube
Logistics
— approaching US-based noteholders
that control the majority of the
company’s debt, with an option of
forgoing some of their payments in the
short-term to ensure that the company
does not collapse.
Atlas chairman David Flanagan said
the arrangements announced today
would “underpin a strong future for
the company”.
“This is nothing short of an outstanding result for
everyone involved directly and indirectly with Atlas,”
“This is nothing short of an
outstanding result for everyone
involved directly and indirectly with
Atlas,” he said.
“It will also pave the way for further
increases in production, enabling us to
deliver strong returns.”
“Our production costs will be very
competitive against other global
supply. This will underpin our ability
to generate strong cashflow which, in
combination with the capital raising,
will provide the company with a robust
balance sheet,” Mr Flanagan said.
Published By Michael Roddan, The Australian Business Review, May 15, 2015