Greenstone in default

Having recently defaulted on debt payments, Greenstone Resources (GRE-T) is engaged in discussions with its bondholders and lenders aimed at recapitalizing the company and ensuring its ability to continue operations.

The Toronto-based gold producer, which operates the San Andres mine in Honduras and the Cerro Mojon mine in Nicaragua, has been hard hit by continued low gold prices. A US$18.7-million line of credit matured in late July, creating a default that allowed bondholders to accelerate the due date of their notes. Should they do so, more than $100 million would be payable immediately. The company says it is in discussions with some of the bondholder and lender groups and is “confident that an accommodative solution can be achieved.”