Mongolian coal mining company, Mongolian Mining Corp. (MMC), is seeking to restructure debt worth US$600 million, according to a company statement to the Hong Kong Stock Exchange. The US$600 million comprises 8.875% senior notes due in 2017.
MMC has been hit by weak metallurgical coal markets – particularly in its principal target market in China, where changes to economic policy has resulted in reduced crude steel production.
The company has appointed J.P. Morgan Securities (Asia Pacific) and SC Lowy Financial (HK) as restructuring advisers. It is encouraging note holders to form a committee “for the purposes of facilitating discussion between the holders and the company.”
The restructuring advisers will assist the company in assessing various restructuring options and formulating a plan to implement an appropriate restructuring of the senior notes.
Edited by Jonathan Rowland.