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Paladin Energy stands up for its shareholders

Paladin intends to dispute CNNC’s actions unless an acceptable compromise can be reached.
Paladin Energy stands up for its shareholders
Paladin is a uranium producer

Paladin Energy (ASX:PDN, TSX:PDN) is determined to stand up for the interests of its shareholders, which include 26,000 small shareholders, circa 1,000 employees, global finance institutions and sovereign-related entities.

Recently, Chinese heavyweight CNNC Overseas Uranium Holdings Ltd claimed an event of default has occurred allowing them to potentially exercise an option to purchase Paladin’s 75% stake in the flagship Langer Heinrich uranium mine, located in Namibia.

Paladin has resolved to dispute the claim that an event of default has occurred and will commence arbitration proceedings against CNNC.

CNNC, a US$40 billion Chinese state-owned company can potentially de-rail Paladin’s previously announced solvent restructure, which has been received positively by the majority of bondholders.

CNNC’s actions are disappointing given the support the Restructure Proposal has received to date, CNNC’s failure to proceed with the acquisition of an additional 24% stake in LHM when it was offered to them last year, and CNNC’s repeated refusal to fund the working capital requirements of LHM. 

Currently, Paladin has executed standstill agreements with bondholders representing 75% of holders of 2017 convertible bonds and 87% of holders of 2020 convertible bonds.

The company has taken significant steps to progress the restructure proposal in order to achieve a successful solvent restructure, seeking to preserve value for all stakeholders.

Paladin intends to dispute CNNC’s actions unless an acceptable compromise can be reached.

It is intended that Paladin’s shares will remain in suspension until Paladin has resolved how it will progress the restructure proposal or a viable alternative.

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