Source - Alliance News

Petropavlovsk PLC is gathering advisers including AlixPartners for assistance in restructuring its debt, Sky News reported Friday.

On Thursday, the London-based miner with operations in Russia explained that it had a $200 million committed term loan and $86.7 million revolving credit facilities between itself and Gazprombank.

An interest payment of $560,000 due on the term loan is currently prohibited due to sanctions. The rouble equivalent of $9.5 million under its revolving credit facility has also not been paid as a consequence of the regulations.

This comes after Gazprombank was last week included on the UK Sanctions List.

Sky News reported that the alternative options available to Petropavlovsk were unclear, and would partly depend upon the length of the sanctions affecting its Russian lender.

Shares in Petropavlovsk closed 15% lower at 3.40 pence on Friday in London, and has fallen 86% in value over the last 12 months.

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