Petropavlovsk confirms sale of its Russian assets for $619m

The business entered into administration in July after sanctions were placed on its main lender and sole buyer of its gold Gazprombank. This left it unable to repay its loans and saw the high court appoint administrators from Opus to the company. 

In its statement, the firm said the $619m sum is “sufficient” to settle the liabilities of the company and to allow it to meet its obligations to all creditors in full. 

The $619m figure consists of a cash consideration of approximately $380.5m, to be reduced dollar for dollar at completion against the face value and unpaid interest on any 2022 note acquired by UMMC. $202.5m of the cost is equal to the amount outstanding on the term loan from time to time, with $20m used for “day-1” administration funding. 

Finally there’s contingency funding of $6m to be used for dealing with any challenges brought in relation to the proposed transaction. 

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