Kenmare to announce ambitious financial restructuring plan

Kenmare Resources is reportedly due to announce a large-scale financial restructuring plan that could involve raising some $300 million (€265 million) at the troubled explorer.

The company defaulted on its debts earlier this year after failing to reach an agreement with its lenders on a deleveraging plan.

It was reported on Wednesday night that Kenmare, which focuses on iron and titanium ore ilmenite, was ready to raise some $100 million by selling stock to a company based in the British Virgin Islands. Sky News also reported that Mozambique-focused Kenmare would source the same amount from Oman’s sovereign wealth fund and generate a further $100 million through a placing aimed at existing shareholders.

A company spokesman declined to comment on the report, which also flagged a debt-for-equity swap with Kenmare’s creditors.

Kenmare's market capitalisation stood at just shy of €28 million on the Irish Stock Exchange when markets closed yesterday.