Dannemora Magnetit in default on SEK 21 million of bridge financing

By Caroline Salls

Pittsburgh, Jan. 29 - Dannemora Magnetit AB is in default on its SEK 21 million bridge loan, according to a news release.

The company said a milestone that requires all rights and obligations under an existing Dannemora Mineral AB equipment lease facility to be transferred to Dannemora Magnetit by Jan. 20 was not satisfied.

According to the release, the lease bank refused to give its approval for the transfer.

The company said its bondholders are currently considering granting approval for Dannemora Magnetit to make further drawdowns under the bridge financing until further notice, despite the default.

The liquidity position of the Dannemora group has improved above expectations since the announcement of the bridge financing, the release said, but the future success of the business depends on the arrangement of a long-term financing solution.

The company said work to explore possible long-term financing solutions continues.

Dannemora Magnetit is a subsidiary of Dannemora Mineral, an iron ore producer based in Danderyd, Sweden.

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