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Paladin Energy directors resign after creditors approve recapitalization

Phil Bailey, Don Shumka, Peter Donkin and Wendong Zhang stepped down as directors of Paladin Energy Ltd., with immediate effect, according to a Dec. 8 news release.

The company is under administration, and its creditors voted in favor of a recapitalization plan tabled by the miners unsecured bondholders.

Accordingly, the administrators have executed the deeds of company arrangement and anticipate completing recapitalization of the company before Jan. 31, 2018.

Under the terms of the deed of company arrangement, existing shareholders will surrender 98% of their shares as part of a debt-for-equity swap with creditors.

The recapitalization will also involve a US$115 million debt raising via high-yield secured notes and the reinstatement of the company shares for trading on the ASX.

However, France's Electricité de France SA, or EDF, which forced Paladin into administration in July after the company failed to make a US$277 million payment, opposed the debt restructuring proposal a day earlier, saying the deal is not in the interest of creditors.

EDF also claimed the proposal is unfairly prejudicial to the French utility, and it may seek to terminate the proposal while the administrators maintained that they have received only one proposal from creditors.

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