Skip to content
Subscriber Only

Mongolian Mining Loan Nonpayment Triggers Cross-Default on Bonds

  • Miner didn't make loan payments to BNP Paribas, China's ICBC
  • `It has been burning cash rather fast,' Lucror's Nguyen says

Mongolian Mining Corp. didn’t make principal and interest payments on a $200 million loan facility and wasn’t able to get a temporary waiver from banks, triggering a cross-default on its bonds.

The miner failed to make the payments on the loan facility taken from BNP Paribas SA and Industrial & Commercial Bank of China Ltd. in March 2014, and didn’t get a waiver from the lenders, according to a stock exchange filing. The situation constitutes a cross-default event in the terms of other indebtedness including its $600 million of 8.875 percent notes, it said.