Pasminco Restructure Approved By Creditors

Pasminco Chief Executive Officer Greig Gailey today welcomed the news that the company’s creditors had approved a proposal to enter into Deeds of Arrangement that will allow the restructure of Pasminco to proceed.

The restructure proposal involves the issue of shares in lieu of debt to the company’s creditor financiers. The financiers’ interest will subsequently be partially sold down via a public float, with the creditors retaining a residual shareholding in the company.

Mr Gailey said, “This is great news for employees and the communities in which Pasminco operates and means that the company can now look to the future with confidence. The uncertainty of the last twelve months is now largely behind us.

“Although metal prices are still at historically low levels, the global economic outlook is improving. With the company free of its debt burden, it will be well placed to participate in the upswing in metal prices that will flow from stronger global economic growth. We must continue to focus on safety, production and costs containment to ensure that we can take full benefit from the expected improvement in metal prices,” he said.

“Again I would like to particularly thank Pasminco’s employees for their ongoing effort during a period of uncertainty. Securing the jobs and entitlements of our 3,500 staff has been a priority for both Pasminco management and its administrators and it is particularly pleasing to be able to see this outcome achieved.

“With the restructure approved we will be concentrating on achieving a successful float and ensuring we have a focussed, efficient and viable entity,” Mr Gailey said.

For further information contact:
Trevor Shard
General Manager – Investor & Community Relations
++61 (3) 9288 9186 or 0419 584 515

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