The agreement, initially settled June 18 and due by the end of June, has been pushed to July 12, officials confirmed.
“Cline has been negotiating an alternative financing arrangement with Marret Asset Management and is expected to close the financing by the July 5 2013, and ensure that the terms of the forbearance agreement are satisfied,” executive chairman Mark Haywood said.
The company also has opted to postpone its annual general meeting until August 15, with specifics on time and location forthcoming.
Haywood confirmed last month that Cline would delist from the Toronto Stock Exchange June 21, and just days later said it was unable to make its June 17 interest payment of about $C3.2 ($US3) million on an existing financial deal.
“[We have] agreed with the trustee to forbear from taking action under the trust indenture until the end of this month whilst an alternative financing arrangement is negotiated with Marret Asset Management,” he said at the time.
He noted the semi-annual interest payment on its outstanding $C65.5 million in 10% senior secured bonds was missed due to Cline's “present financial situation”
In June, Cline chief financial officer Earnest Cleave and chief operating officer David Stone both tendered their resignations and have since left the company.