Deals
Newmont Bondholder Revolt May Put Barrick on Hook for Debt
- Block of covenant change likely makes JV with Barrick liable
- Barrick says won’t assume guarantee, expects Newmont to handle
Photographer: Dado Galdieri/Bloomberg
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Barrick Gold Corp. could find itself partially liable for $600 million in additional debt if some Newmont Mining Corp. bondholders have their way.
The creditors are trying to block an amendment Newmont is seeking for a large tranche of notes associated with its operations in Nevada, according to people with knowledge of the matter. The change would prevent liability for those bonds from shifting to Barrick after the companies’ recently announced joint venture in the state is completed.