Cline reverted to the Marret plan restructuring transaction after alternative Singapore-based private company Portpool Investments did not meet an initial deposit deadline.
Cline said earlier in the month that it would pursue its previously negotiated restructuring plan with Marret, announced on December 27, 2012.
Monday’s announcement confirms the company’s move back to the Marret plan.
Cline has filed a preliminary short form prospectus with respect to the rights offering and issuance of warrants to its shareholders.
The company also announced it had been granted an extension for a listing committee hearing scheduled to determine whether the company continued to meet Toronto Stock Exchange listing requirements.
The continued listing of the company on the TSX is a pre-condition to the completion of the recapitalization.
In December, Cline president and chief executive officer Ken Bates blamed the necessity of the restructuring on macro factors hammering the industry as a whole.
“The restructuring is an important step in the company’s efforts in developing a long-term financial solution to address the uncertainty regarding the magnitude and extent of the downturn in the coal markets,” he said.
Cline’s metallurgical coal property interests are located in British Columbia, Canada and Colorado.
Its New Elk project in Colorado has 618.9 million tons of measured and indicated coal resources and inferred coal resources that total 104.5Mt.
The complex comprises the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.
Its seams are classified as low-sulfur, high-volatile B bituminous coal and can be marketed as a high-ash metallurgical-grade coal, a pulverized coal injection coal or a thermal coal.