ZYL said its key lender Prestige Glory had entered an agreement with Ascent Capital Holdings to propose a deed of company arrangement once an administrator was appointed.
This will lead to a recapitalisation plan consisting of a 100 for 1 share consolidation and subsequent placement of 115 million fully paid new ordinary shares at 1c each ($A1.15 million value).
ZYL said the scheme would transfer all of its South African assets to Prestige excluding its Kangwane South project, which would be ZYL’s focus once it recapitalised.
As of late 2012, this South African anthracite project hosted 17.36 million tonnes of proven reserves.
