Citing its “present financial situation”, Canadian-based Cline said that it could not make a semi-annual interest payment of $US3.3 million on $65.5 million in outstanding 10% senior secured bonds.

Additionally, it could not make the semi-annual interest payment of $C552,000 on $12.3 million in outstanding 10% senior secured convertible bonds.

As a result, the company said Tuesday, it had signed two forbearance agreements with Computershare under the 10% senior secured bond trust indenture initially dated December 13, 2011 as well as the 10% senior secured convertible bond trust indenture dated July 8 of this year.

Cline said that Computershare has agreed not to take any enforcement actions for either indenture until January 16, 2014.

In July, two weeks after confirming it had made a forbearance agreement with Computershare in late June to provide extra time to make alternate financial arrangements, the TSX-listed miner said it had extended the deal.

The agreement, initially settled June 18 and due by the end of June, was pushed to July 12.

Officials confirmed in June that Cline would delist from the Toronto Stock Exchange on 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.

Cline has metallurgical coal properties in Canada’s British Columbia and in Colorado.