Pasminco Restructure Approved By Creditors

The Administrators of major zinc producer Pasminco, Messrs. John Spark and Peter McCluskey of Ferrier Hodgson, announced that a proposal for Pasminco to proceed with a restructure pursuant to Deeds of Company Arrangement was approved at a Creditors’ Meeting this morning.

The Deeds of Company Arrangement are required to be signed by the end of September, paving the way for the Pasminco restructuring process to take effect.

“Today’s result marks the most significant step forward to date in the process that will see Pasminco successfully emerge from Administration. The Equity and Float Option approved today allows for the float process to begin and leaves Pasminco with a viable future,” Mr Spark said.

“Going forward the restructured Pasminco will be well positioned to take advantage of improved market conditions including any upturn in zinc prices. It will have a conservative balance sheet, an integrated world class asset base underpinned by the Century zinc mine and a management team focussed on driving continued operational improvements.”

The historical audited accounts for the year ended 30 June 2001 and the half year to 31 December 2001 have been lodged with ASIC today.

Mr Spark said that since January 2002, the company had achieved a break-even operational cash flow result, despite the continuing weakness in zinc prices and the uncertainty for the company, its employees and customers ahead of this approval on the restructuring.

“A number of Pasminco operations are recording very positive performances, with some sites achieving record production figures for the year ended June 30, 2002,”
Mr Spark said.

The restructure proposal – the Equity and Float option – involves an issue of shares in lieu of debt to creditors and financiers owed approximately $2.8 billion. It is proposed this equity would subsequently be partially sold down via a public float.

Click here to download Ferrier Hodgson Media Release - Pasminco Restructure
Approved by Creditors

For information, please contact:
Felicity Allen
(03) 9654 6555/0413 946 701

Paula Hannaford
(02) 9552 4499/0413 940 180
Gavin Anderson & Company

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