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Gold miner Avocet to consider insolvency for Burkina Faso unit
September 4, 2017 / 6:37 AM / 17 days ago

Gold miner Avocet to consider insolvency for Burkina Faso unit

(Reuters) - Gold miner Avocet Mining Plc (AVM.L) 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.

Reporting by Rahul B in Bengaluru; editing by Jason Neely

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