Wednesday 22nd Nov, 2017

Paladin Energy appoints administrators

Photo: Shutterstock
Photo: Shutterstock

Uranium miner Paladin Energy has appointed administrators, after it was given a week to pay $361 million to a key French customer.

Paladin told the ASX on Monday it had appointed administrators Matthew Woods, Hayden White and Gayle Dickerson, from KPMG, to Paladin Energy Limited, Paladin Finance Pty Ltd, and Paladin Energy Minerals NL.

“Following receipt of the demand from Electricite de France S.A., the boards of the relevant companies met and resolved to appoint Administrators,” Paladin told the sharemarket.

Paladin said its directors remained committed to working with Administrators on a restructure and recapitalisation plan.

“The Administrators will immediately undertake a financial and operational assessment of the relevant companies and intend to continue to operate the company on a business as usual basis until further notice,” Paladin said.

Paladin, which has struggled for some time, was planning a major debt restructure, contingent on the continued support of Electricite de France.

The payment stems from a deal struck in 2012, under which EDF paid Paladin US$200 million for uranium supply between 2019 and 2024. With Paladin struggling, EDF has looked to secure its prepayment, along with US$77 million interest.

Paladin attempted to convince EDF to give it more time, but on Monday the French energy business refused this request.