HK Bourse: Announcement From Mongolian Mining Corp.

 
    Following is the related link: 
http://www.hkexnews.hk/listedco/listconews/sehk/2016/0708/LTN20160708047.pdf 
 
 
                                      RECENT DEVELOPMENT 
 
This announcement (the "Announcement") is made by Mongolian Mining Corporation (the 
"Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of the Securities on 
The Stock Exchange of Hong Long Limited (the "Listing Rules") and the Inside Information 
Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of 
Hong Kong). The Company and its subsidiaries are collectively referred to as the "Group". 
 
Reference is made to the announcement of the Company dated 26 January 2016 in relation to the 
potential restructuring the Company is seeking for its US$600,000,000 8.875% senior notes due 
2017 (the "Notes") and the announcement of the Company dated 14 March 2016 in relation to the 
formation of noteholders' steering committee (the "Steering Committee"). 
 
Reference is also made to the announcement of the Company dated 5 March 2014 and the 2014 
annual report in relation to the facilities agreement, as amended from time to time (the "BNP/ 
ICBC Facilities"), dated 5 March 2014 entered into by the Company as borrower with, amongst 
others, BNP Paribas Hong Kong Branch as agent (the "Agent"), BNP Paribas Singapore branch 
and Industrial and Commercial Bank of China Limited as lenders (collectively, the "Lenders"). 
 
T H I S A N N O U N C E M E N T C O N TA I N S F O RWA R D - L O O K I N G S TAT E M E N T S . 
SUCH FORWARD-LOOKING STATEMENTS INVOLVE IMPORTANT RISKS AND 
UNCERTAINTIES THAT COULD SIGNIFICANTLY AFFECT ANTICIPATED RESULTS 
IN THE FUTURE AND, ACCORDINGLY, SUCH RESULTS MAY DIFFER FROM 
THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS MADE BY THE 
COMPANY. SHAREHOLDERS OF THE COMPANY, HOLDERS OF THE NOTES (THE 
"NOTEHOLDERS"), HOLDERS OF OTHER SECURITIES OF THE COMPANY AND 
POTENTIAL INVESTORS IN THE SECURITIES OF THE COMPANY ARE URGED NOT 
TO PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS AND TO 
EXERCISE EXTREME CAUTION WHEN DEALING WITH THE SECURITIES OF THE 
COMPANY. 
 
The Company is in discussions with the Steering Committee, the Lenders, other creditors of 
the Group and their respective advisors, with a view to effecting a debt restructuring that will 
safeguard the ability of the Group to continue to trade as a going concern, and thereby maximize 
returns to the creditors of the Group as a whole. 
 
 
 
 
                                                          1 
The purpose of this Announcement is to provide the indicative terms of the restructuring of 
the Notes and the BNP/ICBC Facilities as the Company currently proposes (the "Indicative 
Debt Restructuring Proposal"). The Indicative Debt Restructuring Proposal contemplates 
the Noteholders and the Lenders accepting the proposed consideration (as detailed below, 
the "Proposed Consideration") in full satisfaction of the outstanding principal amount, the 
interest accrued but unpaid and any other claims under the Notes and the BNP/ICBC Facilities, 
respectively. The Proposed Consideration is currently expected to comprise: (i) the New Senior 
Notes, (ii) the Perpetual Notes, and (iii) the New Shares. The Indicative Debt Restructuring 
Proposal also contemplates that treatment of certain non-shared collateral securing the BNP/ICBC 
Facilities is to be discussed and agreed among the Company, the Steering Committee and the 
Lenders. A copy of the Indicative Debt Restructuring Proposal is attached hereto as Appendix A. 
 
The Steering Committee has indicated that it supports the Indicative Debt Restructuring Proposal. 
This support is not subject to any binding agreement, and such key indicative terms as disclosed 
in this Announcement may change as a result of discussions and negotiations with the Steering 
Committee, the Lenders and other creditors of the Group which are still ongoing. The final debt 
restructuring proposal for the Group will be subject to, among other things, the agreement between 
the Group and its creditors. 
 
FOR THE AVOIDANCE OF DOUBT, NONE OF THE KEY INDICATIVE TERMS AS 
DISCLOSED IN THIS ANNOUNCEMENT HAS BEEN AGREED BETWEEN THE GROUP 
AND ITS CREDITORS. THERE CAN BE NO ASSURANCE THAT SUCH AGREEMENT 
CAN BE SUCCESSFULLY ACHIEVED. 
 
The Company will publish further announcements to update the shareholders and potential 
investors on progress of discussions with its creditors as and when necessary. The Company will 
comply with the Listing Rules if and when it enters into any binding agreement with its creditors. 
 
THERE CAN BE NO ASSURANCE THAT ANY DISCUSSIONS BETWEEN THE GROUP 
AND ITS CREDITORS WILL LEAD TO A PROPOSAL ACCEPTABLE TO ALL OF 
THEM MORE GENERALLY OR SUCH DISCUSSIONS CAN BE PROGRESSED TO ANY 
POSITIVE CONCLUSION. ACCORDINGLY, THE COMPANY OFFERS NO ASSURANCE 
THAT THE PROPOSED RESTRUCTURING OF THE NOTES AND THE BNP/ICBC 
FACILITIES WILL BE SUCCESSFULLY CONCLUDED. SHAREHOLDERS OF THE 
COMPANY, THE NOTEHOLDERS, HOLDERS OF OTHER SECURITIES OF THE 
COMPANY AND POTENTIAL INVESTORS IN THE SECURITIES OF THE COMPANY 
ARE ADVISED TO EXERCISE EXTREME CAUTION WHEN DEALING IN THE 
SECURITIES OF THE COMPANY. 
 
 
 
Source: Hong Kong Exchanges & Clearing 
 
 
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