Mirabela Nickel Said It Missed Interest Payment on Debt

Mirabela Nickel Ltd., 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.

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