Ivernia agrees to five more months of forbearance with main lenders

By Kali Hays

New York, June 18 – Ivernia, Inc. has entered into extended forbearance agreements with its primary lenders Sprott Resources Lending Partnership and Enirgi Group Corp., according to a Thursday news release.

Specifically, the lenders agreed to extend a moratorium on interest and principal repayments through the earlier of Nov. 15 or the execution of a strategic transaction.

The company is undergoing a strategic review process with oversight from a special committee formed by Ivernia’s board of directors with the aim of executing a merger, asset sale, restructuring “or any other value maximizing transaction.”

In exchange for the extended forbearance period, Ivernia will pay Sprott C$4.75 million, an amount equal to its bond proceeds, by June 22. The payment will be applied to the outstanding balance of the loan which totaled C$13.99 million as of June 17, according to the release.

During the extended period, Sprott will maintain the right to terminate the forbearance agreement should Ivernia become insolvent or its financial condition undergoes “a further unfavorable material change.”

Toronto-based Ivernia is a base metals mining and exploration company.

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