Bloomberg reported Lonmin Plc (LSE:LMI) won support from shareholders for a proposed $817 million stock sale aimed at helping it avoid breaching pledges to creditors.
As quoted in the market news:
Lonmin, which posted a $698 million loss for the year through Sept. 30, has said the share sale is the best way to help repair its finances and avoid breaching debt covenants after a six-week strike in August and September cut production. Xstrata said last week it will back the offer provided the company makes board and management changes to stem “the destruction of value.”
The shares gained 9.3 percent to 515 pence at the close in London, the biggest advance since June 6 and paring Lonmin’s decline this year to 47 percent.