Dannemora Magnetit proposes composition for payment on 25% of debts

By Kali Hays

New York, Jan. 30 – Dannemora Mineral AB subsidiary Dannemora Magnetit AB presented creditors with a composition proposal in which 25% of their debts would be repaid within one year of the completion of a company restructuring and the remainder of the debt would be written off, according to a Friday news release.

If the Dannemora group is to begin a restructuring and avoid bankruptcy “the composition proposal is only part of the solution” and the reconstruction is only possible “if the financial negotiations that are currently underway can be completed according to a plan and if a private agreement can be reached with creditors of Dannemora Mineral.”

“As a public composition is needed for Dannemora Magnetit, legal proceedings are required, which take time. This means that these proceedings have to be initiated before knowing whether the financial negotiations can be completed and whether a private agreement can be reached in the parent company,” the release stated.

Dannemora Mineral is an iron ore producer based in Danderyd, Sweden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.