The Conversation (0)
Cardero Resource Corp. (TSX:CDU,NYSE:MKT,FWB:CR5) received a demand for payment of certain outstanding indebtedness to certain affiliates of Luxor Capital Group, LP., who are secured creditors of the Company, and are the holders of senior secured notes of Cardero. Cardero Coal Ltd., the Company’s wholly-owned subsidiary, was also served with a demand for payment for the Indebtedness in its capacity as guarantor in connection with Notes. The demand is in the amount of $5,668,513.90, and payment is to be on or before August 5, 2013.
Payment of the outstanding legal fees have been made, and the Company disputes that it was provided with proper notice to pay the legal fees, and takes the position that there has therefore been no default and that the demand for payment of the Notes is invalid.
Payment of the outstanding legal fees have been made, and the Company disputes that it was provided with proper notice to pay the legal fees, and takes the position that there has therefore been no default and that the demand for payment of the Notes is invalid.
As quoted in the press release:
Luxor are the holders of senior secured notes of the Company (the “Notes”), the issuance of which was announced by the Company on April 23, 2013. Cardero Coal Ltd., the Company’s wholly-owned subsidiary, was also served with a demand for payment for the Indebtedness in its capacity as guarantor in connection with Notes. The demand is in the amount of $5,668,513.90, and payment is to be on or before August 5, 2013. The default upon which the demand is based is the alleged failure by Cardero to pay legal costs in the amount of USD 48,136.91 incurred by Luxor in connection with the Notes.
Cardero disputes that it was provided with proper notice to pay the legal fees, and takes the position that there has therefore been no default and that the demand for payment of the Notes is invalid. Payment of the outstanding legal fees has been made. Cardero will resist any attempts by Luxor to enforce payment based on the alleged default, including by appropriate legal action.
Notwithstanding that Cardero does not accept that it is in default under the Notes, the Company is presently engaged in advanced negotiations to secure the appropriate financing to pay out the Indebtedness to Luxor, and anticipates receiving a term sheet in respect of such financing shortly, with a view to completing such financing prior to August 5, 2013.
Click here to read the Cardero Resource Corp. (TSX:CDU,NYSE:MKT,FWB:CR5) press release
Click here to see the Cardero Resource Corp. (TSX:CDU,NYSE:MKT,FWB:CR5) profile.