Gold Reserve again extends restructuring offer to rest of noteholders

By Susanna Moon

Chicago, Oct. 29 - Gold Reserve Inc. said it extended the restructuring offer to holders of $1.08 million, or 1.3%, of its outstanding 5.5% senior subordinated convertible notes due 2022.

The offer to the remaining holders was extended to 5 p.m. ET on Nov. 5 from 5 p.m. ET on Oct. 26. It was originally set to end at 5 p.m. ET on Oct. 16.

As of the most recent deadline, investors had tendered $36,000 of the outstanding notes not held by the four largest noteholders, according to a company press release.

The company previously reached an agreement with holders of 98.7% of the outstanding notes to restructure the notes through a combination of cash, common shares, modified terms for the remaining balance of the notes and a contingent value right, as previously noted.

Each holder will have the option to tender their notes for the following consideration per $1,000 principal amount of convertibles:

• $200 of cash;

• 147.06 common shares;

• $300 of convertibles that will remain outstanding under an amended indenture;

• A contingent value right entitling the holder to a percentage of an award or settlement of the company's ICSID arbitration claim against the Government of Venezuela with respect to the expropriation of the company's Brisas Project and any proceeds from the sale of its mining data.

The maximum contingent value right net of taxes and other deductions that will be paid if all holders elect to participate in the tender offer will not exceed 5.535% of an award or settlement and sale of the mining data; and

• A cash alternative election fee. The total fee will be up to $1 million.

The restructuring was approved by shareholders at a special meeting held on June 27.

The notes are convertible into 132.626 shares of the company's common stock per $1,000 principal amount of notes.

Gold Reserve is a gold and copper mining company based in Spokane, Wash.

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