Midwest Vanadium misses notes payment; parent working on funding deal

By Caroline Salls

Pittsburgh, Feb. 27 - Atlantic Ltd. is finalizing agreements with an informal group of the majority of holders of the senior secured notes of wholly owned subsidiary Midwest Vanadium Pty Ltd. and Atlantic's largest shareholder Droxford International Ltd. to implement a new $35 million funding facility, according to a news release.

Atlantic said the agreements also involve a standstill on Midwest Vanadium's interest reserve account (IRA) and interest payment obligations on the senior secured notes until at least August 2014.

To allow more time for the new facility and standstill documentation to be put in place, the notes group agreed to extend a previously granted forbearance and will not accelerate or take any enforcement action under the indenture before the close of business on March 4.

The notes group previously agreed not to take any action before Feb. 25 as a result of Midwest Vanadium's failure to deposit $5 million into the IRA.

According to the release, Midwest Vanadium was required to deposit $5 million into the IRA and pay the half yearly interest payment on its senior secured notes on Feb. 15.

Atlantic said Midwest Vanadium has not made the IRA deposit or the interest payment. Midwest Vanadium has a 30-day grace period to make the interest payment.

In addition, Atlantic said it requested that a voluntary suspension in the trading of its securities remain in place.

Midwest Vanadium is a Perth, Australia-based mining company.

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