Receivers have been appointed to Mongolian Mining Corp. subsidiary Mongolian Coal Corp. Ltd. after the coking coal producerdefaulted on a US$600 million loan.
The company said April 27 that it has received a demand fromlenders BNP Paribas Singapore and Industrial and Commercial Bank of China Ltd. thatit immediately repay US$95.4 million worth of 8.875% senior notes due 2017 stilloutstanding.
Mongolian Mining revealed in March that it was in on its 2017 notes and wascontinuing talks with a steering committee and its legal and financial advisersto enter into a forbearance agreement.
The company entered into an intercreditor agreement with itslenders, the trustee of the notes and the shared security agent with respect tothe collateral over the capital stock of Mongolia Coal Corp. Ltd. and
However, failureto make a semiannual interest payment of US$26.6 million at the endof March has led to the creditors appointing FTI Consulting as receivers for MongoliaCoal Corp. Ltd. and as delegates with respect to the security over the capital stockof Mongolian Coal Corp. Sarl.
Mongolian Mining said it plans to continue talks with its lenders,the receivers and their respective advisers.
The company appointedadvisers in January to come up with a restructuring plan for the US$600million debt.