NEWS ....MORE TO COME may 31 Niko Provides Corporate Updateless than 1 minute ago by Marketwire Canada - NFD CALGARY, AB--(Marketwired - May 24, 2016) - Niko Resources Ltd. ("Niko" or the "Company")(TSX: NKO) provides the following updates.
Commencement of Consent Solicitation The Company now expects that it will, on or about May 31, 2016, commence the solicitation of consents to amend the trust indenture governing its 7% senior unsecured convertible notes due December 31, 2017 so as to give effect to its previously disclosed strategic plan of maintaining its core assets for a period of time with the goal of enhancing the value of such assets for the benefit of all of the Company's stakeholders. For additional information, noteholders should refer to the Company's press release of March 24, 2016.
Diamond Settlement Agreement As previously disclosed, in complying with the terms of the facilities agreement (as amended) governing the Company's senior term loan facilities, the Company is restricted from making any payments under the terms of the Diamond Settlement Agreement, and, as such, continues to be in default of certain obligations under the Diamond Settlement Agreement. On June 30, 2015, the Company did not make a scheduled payment of US$5 million under the terms of the Diamond Settlement Agreement and in July, 2015, Diamond filed suit in a court in Texas seeking to enforce the payment and other obligations. On September 30, 2015, December 31, 2015, and March 31, 2016, the Company did not make additional scheduled payments totaling US$15 million. The Texas court has issued a summary judgment in the amount of $20 million plus interest and legal costs. The Company is currently considering the implications of this judgement and evaluating all its options, including an appeal. For further information regarding this matter, please see the disclosure in the Company's MD&A for the three? month period ended December 31, 2015, filed on the Company's SEDAR profile at www.sedar.com.