PA Resources has reached an agreement with its major creditors to provide the company with funding until the end of 2015 in the form of a USD 7.5 million short-term credit facility. An initial USD 2.5 million tranche has been made available to the company to draw on while the documentation is being finalised. The credit will have priority over the company’s existing debt.
The new credit will allow PA Resources to continue funding its operations during the strategic review process initiated by the board of directors. The aim of the process is to explore the company’s different options with regards to maximising the value for all of the company’s various stakeholders. The options being explored are long-term funding for all or part of the business, a corporate transaction or the divestment of individual assets or business units.
Mark McAllister, President & CEO of PA Resources comments "We are pleased to have secured funding through 2015 and appreciate the support of all our creditors, particularly the bondholders and the Gunvor Group, during this challenging and transitional time for the company. With this new short-term finance in place, PA Resources can move forward with its strategic review to determine the future of the company and how to best realise value for its stakeholders."
