Canada-based Cline Mining, which has been hurt financially because of money poured into a currently idled coal mine in Colorado, announced Dec. 16 that it has entered into a forbearance agreement with Computershare Trust Co. of Canada.
Due to Cline’s present financial situation, a semi-annual interest payment of about US$3.3m could not be made on its outstanding US$65.5m 10% senior secured bonds and a semi-annual interest payment of about C$552,000 could not be made on its outstanding C$12.3m 10% senior secured convertible bonds.
Cline has consequently entered into two forbearance agreements with Computershare Trust, which is the trustee under the 10% senior secured bond trust indenture dated Dec. 13, 2011, as supplemented, and the 10% senior secured convertible bond trust indenture dated July 8, 2013, as supplemented. Under the agreements, the trustee has agreed to forbear from taking any action to enforce certain of its rights under either indenture until Jan. 16, 2014.
Cline is a Canadian mining company focused on the maintenance and development of its 100% owned New Elk coking coal mine located in Colorado. With a head office in Toronto and site offices at the mine, Cline is led by a management and operations team with over 100 years of exploration and mining experience.