Northland Resources S.A. (TSX:NAU,OSLO:NAUR, FRANKFURT:NPK) announced that its subsidiary in Sweden, Northland Resources AB, filed for reconstruction based on a shortage of liquidity and to finalize negotiations for long-term financial solution.
As quoted in the press release:
With the goal of obtaining the time to conclude these negotiations, the Company, in consultation with its main creditors, has decided to seek reconstruction of its Swedish subsidiary Northland Resources AB (publ). To support the reconstruction the Company is seeking support from bondholders and stakeholders for about USD 12 million. This would enable the Company to continue full operation until March 4, 2013, by which time the Company aims to have agreed a solution for its long term funding.