Russian gold miner Petropavlovsk delivered an update on early Wednesday regarding debt restructuring with Gazprombank (GBP) following the freezing of its assets after its inclusion on the Russian sanctions lists.
Petropavlovsk had previously disclosed a significant financial commitment to GBP, including a $200m term loan and $86.7m in credit facilities.
Last week, Petropavlovsk brought to light the company’s financial commitments with GBP. The firm said they have a $200m committed term loan with GBP. The group also acknowledged GBP’s involvement with Petropavlovsk’s subsidiaries in Russia, as the bank provides a revolving credit facility of $86.7m.
On 25 March 2022, Petropavlovsk was due to pay interest of $560,000 under the term loan, however, sanctions prevented the company from making the payment.
On March 28 2022, the rouble equivalent of $9.5m became repayable under the RCFs, but was not paid as a result of the sanctions.
The company confirmed that $500 million 8.125% guaranteed notes due 2022 issued by Petropavlovsk 2016, of which $304 million remains outstanding, are scheduled to mature in November 2022.
With current circumstances proving problematic for Petropavlovsk and its financial obligations, the company is in the initial phase of talks with its advisers and GBP regarding a possible restructuring of the group’s debt.