LionGold says it may extend talks over debt restructuring
LIONGOLD Corp - one of the trio involved in the penny stock crash of 2013 - was queried by the Singapore Exchange (SGX) on Thursday over the stock's heavy trading activity.
It said in response that it plans to discuss with creditors on ways to extend a deadline over a debt restructuring proposal tied to outstanding debt of some S$15.8 million. The long stop date then was Dec 28, 2017.
LionGold was the most actively traded counter listed on SGX on Thursday, with 724 million shares changing hands. The stock closed flat at S$0.002.
In its statement on Thursday, LionGold said: "The company wishes to inform shareholders that the long stop date has passed, and the company has not obtained the relevant approvals." Such approvals included shareholders' approval for the issuance of any repayment shares.
"Notwithstanding this, the company intends to have discussions with the creditor and the manager (of the creditor) to extend the long stop date."
In late June last year, LionGold said it would pay the bond creditor, Premier Equity Fund Sub Fund D, S$1 million in cash on June 18, 2019, and repay S$750,000 in cash every six months thereafter, up until the maturity date due in 2022.
In that time, the creditor would also hold the option to the creditor shall have the option to convert the balance sum into new shares.
12 January 2018