Woodbois Limited (LON:WBI), the timber and veneer group, has negotiated a debt restructuring in principle with the majority of its convertible bondholders.
Owners of 75% of US$30mln of outstanding bonds have agreed to convert into voting and non-voting shares and a zero-coupon convertible bond subject to equity funding also being carried out.
Discussions are underway as well with the holders of its internal trade finance facility (ITF), including Lombard Odier, which is also a substantial shareholder.
Woodbois said the aim is to retire the ITF as part of the planned restructuring and fundraise.
Operationally, Woodbois added it wants to increase capacity at its veneer plant in Gabon to increase margins.
Sawmill operations have restarted in Gabon while the groups operations in Mozambique recommenced last month on a 50:50 profit share basis.
Woodbois added that it is ideally placed to scale up its operation as the current coronavirus crisisRead More – Source