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Ashanti Goldfields Co. (ASL) Message Board

  • goldfits goldfits Feb 9, 2000 12:09 PM Flag

    Text of Jonah's speech -- pt 5

    As part of the agreement to trade margin-free for
    the next three years, Ashanti also agreed to prepare
    a corporate restructuring plan that would give our
    bankers comfort as to the future viability of the
    company. The delivery of, and commitment to implementing
    this plan would secure the rollover of existing debt
    facilities, and the approval of the proposed US$ 100 million
    bridge facility that was required to meet the working
    capital shortfall.

    A restructuring plan to
    recapitalise the company's balance sheet was formulated taking
    into account the concerns of the key stakeholders: on
    the one hand, shareholders who were concerned by the
    reach of the Ghana Government's Golden Share and its
    impact on the company's prospects; on the other, the
    Ghana Government as shareholder, who wanted to remain
    undiluted in a key national asset. Of the many options we
    evaluated, two broad solutions emerged:
    1. the raising of
    equity; and/or
    2. the sale of an interest in an asset
    - in this case Geita - to raise cash to pay down
    debt.

    Ashanti's clear preference was to raise equity. We saw -
    and continue to see - Geita as the engine of growth
    for the company, and Tanzania as an ideal country in
    which to do business.

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