Sons of Gwalia arrangement period extended to Nov. 30

By Caroline Salls

Pittsburgh, Aug. 9 - Sons of Gwalia Ltd. received an extension to Nov. 30 of its Deeds of Company Arrangement debt restructure period, according to a company release.

The debt restructuring will be accomplished through a scheme of arrangement via a partial debt-for-equity exchange that will result in a standalone tantalum group, the release said.

Upon implementation of the restructuring, scheme companies other than those holding tantalum group assets will be liquidated.

According to the release, the value of the group's assets is significantly less than the estimated amount of claims. Therefore, creditors will have the primary interest in the tantalum assets.

The company said there will not be a return to shareholders under its liquidation.

The Sons of Gwalia said they plan to hold a creditors meeting before Nov. 30 to give creditors an administration status report or consider approval of the scheme of arrangement.

Sons of Gwalia is a Perth, Western Australia-based mining company.

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