Originally posted on Financial Post | Business:
It’s never good news when a company announces it can’t make a scheduled semi-annual interest payment, and it’s particularly bad news given what such a decision implies for the affected bondholders as they try and reclaim some value.
But that’s the state of affairs at Cline Mining Corp., which has metallurgical coal interests in Colorado and has also sued the B.C. government for loss of rights under coal licences in that province.
While no DBRS-rated issuer has defaulted this year, Cline didn’t make a $2.5-million payment Monday on $50-million of 10% senior secured bond. “The company is considering its options,” it said.