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Petra Diamonds hands itself over to lenders

Restructuring deal will see 91 per cent of shares in Cullinan owner held by creditors after new equity is issued
Petra Diamonds hands itself over to lenders
  • Poor mine performance and weak diamond market mean Petra has had to pull the plug on independent survival hopes
  • Deal with lenders sees shareholders left with just 9 per cent of the company 
IC TIP: Sell at 1.7p

Petra Diamonds (PDL) shareholders will be left with around 9 per cent of the miner’s issued shares in a deal designed to save the company. A sale process announced mid-year did not bear fruit, and $650m in loans coming due in May 2022 have become the main problem. Petra, owner of the famed Cullinan mine South Africa, said that it would split the debt into $307m of new notes, with the remaining debt that is converted into equity destined for the bondholders, with the result that they will end up with 91 per cent of Petra Diamonds’ equity, with the remaining 9 per cent being apportioned to existing shareholders.*

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