IDC consents to loan rights standstill for Lace Diamond Mine in business rescue
The Industrial Development Corporation, primary lender to DiamondCorp’s Lace Diamond Mine which was put into business rescue last month, had agreed to a standstill of its rights under its secured project loan until business rescue was completed, DiamondCorp said on Monday. Lace, which is due to reach commercial production next year, was placed in business rescue after heavy rain in November flooded the underground area and damaged drilling equipment. Since then, DiamondCorp’s shares have been suspended. DiamondCorp said it was speaking to Lace’s South African and UK bondholders to achieve a formal agreement for a similar standstill, but a decision could not be made before early January. Laurelton Diamonds, which lent money to DiamondCorp Holdings, had agreed to roll up interest until the earlier of November 1 next year or completion of refinancing and to defer capital repayments until March 1 2018. Interest would accumulate at the existing rate of 9%, plus 2%. DiamondCorp had repaid...
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