Mirabela Nickel Said It Missed Interest Payment on Debt

Mirabela Nickel Ltd. (MBN), an Australian producer, said a missed payment of interest due on its debt will only cause a default should it continue for 30 days.

The company didn’t make a payment of interest on Oct. 15 relating to the about $395 million of 8.75 percent unsecured notes maturing in 2018, Perth-based Mirabela Nickel said today in a statement.

Mirabela Nickel, halted from trading in Sydney on Oct. 7, has seen its market value plunge to A$14 million ($13.5 million), from A$421 million at the start of the year. The company had its credit rating lowered to Caa3, from Caa1, by Moody’s Investors Service Inc. this month, and cut to CCC+, from B-, by Standard & Poor’s.

The nickel producer plans to give an update on the company and operations by the end of the month, it said today.

To contact the reporter on this story: Paulina Duran in Sydney at pduran10@bloomberg.net

To contact the editors responsible for this story: Keith Gosman at kgosman@bloomberg.net; Katrina Nicholas at knicholas2@bloomberg.net; Jason Rogers at jrogers73@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.