By Oliver Griffin
Canadian mining company Katanga Mining has been approached by Anglo-Swiss miner and commodities trader Glencore, which owns 86% of Katanga, over its indebtedness.
At Dec. 31, Katanga owed interest of $452.8 million to Glencore under existing loan agreements. The Canadian company said Wednesday that Glencore has submitted a proposal designed to address this debt and that Katanga has formed a special committee of independent directors, which has retained advisors, to facilitate talks.
Katanga said Glencore has agreed to provide the financial support it needs to help it pay its debts when they are due in the 12-month period from the date of approval of Katanga's first-quarter results.
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