Ferrexpo Plc, which said last week most of its cash was tied up in an insolvent Ukrainian bank, is offering concessions to lenders to convince them to extend loans, according to two people familiar with the matter.

The London-listed company amended earlier proposals to include limiting future dividend levels until loan repayments increase, said the people who asked not to be identified because the situation is private. The company is seeking a 12-month extension to about $500 million of loans, they said.

Ferrexpo’s shares and bonds plunged on Friday after Bank Finance & Credit JSC was declared insolvent, endangering $174 million of the miner’s $280 million of cash. The company is also wrestling with a slump in commodity prices and the conflict in Ukraine, home to many of its mines.

“The insolvency of Bank F&C makes negotiations much more complicated for Ferrexpo,” said Ivan Dzvinka, an analyst at Eavex Capital in Kiev, Ukraine. “It will be very difficult now to persuade lenders to delay repayments, especially for the facility due next year.”

A spokesman for Ferrexpo in London declined to comment on the loan extension proposals. The miner said on Friday that Bank F&C’s insolvency won’t affect operations. Ferrexpo and Bank F&C are both controlled by Kostyantin Zhevago.

Ferrexpo has a $420 million credit facility maturing in July 2016, of which $198.5 million was outstanding at the end of June, the company said Aug. 5. Repayments on a $350 million pre-export finance loan maturing in 2018 start next year. The company’s borrowings total about $1.1 billion, data compiled by Bloomberg show.

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