Cline Mining Corporation T.CMK

News

[ark88]

Tuesday, June 18, 2013

 

Cline Executes Forbearance Agreement With Trustee

13:31 EDT Tuesday, June 18, 2013

TORONTO, ONTARIO--(Marketwired - June 18, 2013) - Cline Mining Corporation ("Cline" or the "Company") (TSX:CMK) announced today that it has entered into a forbearance agreement with Computershare Trust Company of Canada (the "Trustee").

The Company's Executive Chairman, Mr. Mark Haywood stated that "Cline was unable to make its June 17 interest payment of approximately $3.2 million and has agreed with the Trustee to forbear from taking action under the Trust Indenture until the end of this month whilst an alternative financing arrangement is negotiated with Marret Asset Management Inc."

Due to Cline's present financial situation, a semi-annual interest payment in the amount of approximately $3.2 million could not be made on its outstanding $65.5 million 10% senior secured bonds. Cline has consequently entered into a forbearance agreement with Computershare Trust Company of Canada, the Trustee under the 10% senior secured bond trust indenture dated December 13, 2013, as supplemented (the "Trust Indenture"), pursuant to which the Trustee has agreed to forbear from taking any action to enforce certain of its rights under the Trust Indenture until June 30, 2013, provided that Cline continues to proceed with an alternate financing with Marret Asset Management Inc., on behalf of certain bondholders.

A copy of the forbearance agreement will be made available on the Company's reference page at the System for Electronic Document Access and Retrieval (www.sedar.com).

[ark88]

See how this will unfold. The Trustee is acting onhelf of the debtholders, bypassing Marret.  The trustee can opt to start the liquidation of all the assets of New Elk at which point EVERYONE is in the same boat. Let's see how motivated Marret is now with this predicament.

[larryl2]

still not clear what going to happened with shares? Toilet paper or better?

[ark88]

Let's have a look at the assets at New Elk. As far as I could remember, the Marret bonds are secured ONLY with the assets of New Elk.   They blew some $75 mil. at the wash plant. Nothing to recover on that. They bought 10 CMs at $1 mil. each. Given the dire situation of the mining industry on the whole at the present moment, perhaps they can get $500k each for the CMs? Also, remember that

[bond46]

The value of the assets don't add up, ark88, so it's unlikely the Trustees will force liquidation. My sense is, even if some Marret stakeholders want their money, Marret will supply the funds to Cline, for them to be paid off. This whole scheme was pre-arranged I believe from the moment Haywood was placed on the board. The new leadership enjoys the trust of Marret and I think they'll

[Misbah1]

What is going to happen with shares of retail investors?? sensible responses only please Have great day Misbah

[LifesEvents]

From experience, once delisted, it wont list again. There is pretty much NO recovery but a Capital Loss!....Any  turnaround would be the Impossible!!!   Enjoy your day!  

[ark88]

I agree. The only hope for retail shareholders is for CMK to be listed on the NEX to buy time, waiting for the macro picture to improve for metcoal. The odds are slim to none as the metcoal space IMO won't improve for some time, all the while the bankruptcy guillotine is a hair trigger away.