Petra Diamonds must restructure debt despite strong recovery
Hefty shareholder dilution is still on the cards despite SA mines returning to normal production and improved rough diamond prices
27 October 2020 - 16:34
SA’s second-largest diamond producer has noted a one-fifth increase in rough diamond prices as its three SA mines recovered from the lockdown, but it’s not enough to stave off a massively dilutive debt restructuring plan.
London-listed Petra Diamonds, which is engaged in a plan to address a $650m bond that falls due in 2022 and which would dilute existing shareholders to a mere 9% stake in the miner, reported a decline in production in the quarter to end-September, the first of its financial year...
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