Fitch Rating announced that Mongolyn Alt (MAK) LLC has received an extension on the expiry of its consent and waivers for its loans from the European Bank for Reconstruction and Development and Deutsche Investitions to March 31, 2018 from February 28, 2018, as a proposed bond issuance has been delayed. The extension will not affect the expected Long-Term Issuer Default Rating of “CCC+” on MAK and the expected rating of “CCC+”on its proposed US dollar notes that Fitch Ratings assigned on 31 January 2018. Fitch reported that it will continue to monitor closely the company’s refinancing and restructuring efforts. MAK’s expected ratings reflects the Mongolia-based coal miner’s adequate liquidity and debt maturity profiles, assuming it completes the proposed bond deal and debt restructuring. The company plans to repay some of its existing loan facilities that are in default with proceeds from the proposed bond.

The remaining loans will be restructured based on terms outlined in the signed consents and waivers from each respective lender. MAK intends to repay the loans from EBRD and DEG with the proceeds from the proposed bond issuance. The consent and waivers from the company’s other lenders expire on May 31, June 30, and August 31. In addition, the EKF loan consents and waivers require MAK to complete its proposed bond issuance by March 31, 2018.

Source: BloombergTV.mn