Dannemora Magnetit bondholders OK extension and escrow fund drawdown

By Caroline Salls

Pittsburgh, Feb. 26 - Dannemora Magnetit AB's senior secured bondholders unanimously approved a company proposal at a meeting held on Tuesday, according to a notice from bond trustee Norsk Tillitsmann ASA.

As previously reported, Dannemora Magnetit asked holders of its super senior secured bond issue due Feb. 19 to extend the maturity of the bonds to Feb. 28 and release funds in an escrow account, despite the existence of events of default and drawdown block events.

Although the company and its advisers have made some progress toward reaching a restructuring agreement with relevant stakeholders and a potential investor, Norsk Tillitsmann said in a previous notice that they have not been able to secure sufficient financial commitments to support a restructuring.

As a result, the trustee said the company would not be able to repay the bonds on the Feb. 19 maturity date.

In addition, Norsk Tillitsmann said Dannemora has drawn down SEK 10 million to date from the escrow account and wants to draw down the remaining SEK 9.95 million to continue operations while in restructuring talks.

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

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