Friday, March 29, 2024

Avocet to consider insolvency for Burkina Faso unit

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Isaac Kaledzi
Isaac Kaledzihttps://en.wikipedia.org/wiki/Isaac_Kaledzi
Isaac Kaledzi is an experienced and award winning journalist from Ghana. He has worked for several media brands both in Ghana and on the International scene. Isaac Kaledzi is currently serving as an African Correspondent for DW.

Gold miner Avocet Mining Plc said on Monday it will consider filing for insolvency of its subsidiary Societe des Mines de Belahouro (SMB), which operates the Inata gold mine in Burkina Faso, after the unit’s standstill agreement with its creditors expired.

The boards of SMB and Avocet will meet on Sept. 8 to consider “all available options, including the potential filing of an insolvency petition by SMB”, Avocet said in a statement.

SMB’s financial and trade creditors could not agree among themselves on an extension of the agreement, the company said.

“Given the current status of discussions, it is unclear whether agreement on a restructuring of the balance sheet can be reached before SMB has exhausted all available sources of financing,” the company said.

Reuters

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