Business
49 North Resources Inc. Amends Proposal to Debentureholders
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNIT...
About this update from 49 North Resources Inc
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES./ \n\n\nTSX Venture Exchange Symbol FNR \n\n\nSASKATOON, SK, April 23, 2013 /CNW/ - 49 North Resources Inc. (\"49\n North\" or the \"Company\") (TSXV: FNR) has amended its proposal to the\n holders of its 8% Convertible Unsecured Subordinated Debentures due\n September 23, 2013 (the \"2013 Debentures\") and the holders of its 8%\n Convertible Unsecured Subordinated Debentures due June 29, 2014 (the\n \"2014 Debentures\", and together with the 2013 Debentures, the\n \"Debentures\") previously announced on April 8, 2013. The Company now\n intends to seek separate approval from each of the holders of the 2013\n Debentures and the holders of the 2014 Debentures (collectively, the\n \"Debentureholders\") to:\n\n\nExtend the maturity date of the Debentures by three years;\n\n\nForbear on the payment of any interest due on the Debentures in 2013,\n provided that the unpaid interest be added to the principal amount of\n the Debentures to be repaid at the maturity date, as extended;\n\n\nAmend the interest rate for each of the Debentures to increase the rate\n to 9.00% per annum as from the date of amendment;\n\n\nAmend the conversion price for the Debentures to reduce the price to\n $1.50 throughout the term of the Debentures;\n\n\nProvide that no premium will be payable upon redemption of the\n Debentures by 49 North after the expiration of the original term of the\n Debentures; and\n\n\nProvide that the Company shall not incur any long term debt obligations\n until the Debentures have been fully retired, unless prior approval for\n such long-term debt has been sought and received from the\n Debentureholders (collectively, the \"New Proposal\").\n\n\nThe New Proposal reflects comments 49 North received from\n Debentureholders in connection with its prior proposal to exchange the\n Debentures for preferred shares of the Company. In particular, some\n Debentureholders advised the Company they are unable to hold equity\n securities. In an attempt to accommodate all of its Debentureholders as\n best as possible, 49 North has therefore revised its original\n restructuring plan.\n\n\nThe rationale for the New Proposal is the same as what led the Company\n to initiate its original restructuring proposal - the current dismal\n state...