St Andrew halts bond payments

Toronto-based St Andrew Goldfields (TSE) is suspending interest payments on $9.8-million worth of 5.75% Swiss convertible bonds, after reaching an agreement with bondholders recently.

At a meeting in Geneva, Switzerland, bondholders agreed to forgive interest payments on the bonds from Dec. 7, 1990, until Dec. 6, 1992, and to defer interest payable from Dec. 7, 1992, to June 6, 1995, until June 6, 1995. They also voted to renounce any declaration that the bonds are immediately repayable and to delete the minimum net worth test.

As about $10-million worth of the Swiss bonds were converted into preferred shares earlier this year, the company expects to save about $1 million in interest payments over the next two years, according to Peter Earl, vice-president of finance. It has paid out about $3 million in interest since the bonds were issued in June, 1988.

Production attributable to St Andrew from the Stock and Hislop Twp. gold mines in Ontario is expected to be about 30,000 oz. this year, Earl says. With its 15.2 million shares trading recently at 38 cents, the company is holding debts of about $13 million.

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