Ashanti Goldfields restructure moves ahead

Ashanti Goldfields Company Ltd said today the company had satisfied two key milestones for the proposed restructure of its 5.5 per cent exchangeable guaranteed notes due March 15, 2003.

Ashanti chief executive Sam Jonah said the company has secured approval from those of the hedge counterparties whose support is required to implement the proposed restructuring to continuing margin free arrangements after completion of the restructuring.

"A syndicate of four banks has agreed to provide an underwritten $US100 million revolving credit facility to replace the existing revolving credit facility on completion of the restructuring," Mr Jonah said in Sydney.

"We are also pleased that the conversion price for the new notes has now been set at a higher level.

"We believe the proposed restructuring is on track."

Ashanti said the exchange price for the new exchangeable notes has been determined at $US5.75, a 55 per cent premium to the closing share price on the day prior to the announcement of the proposed restructure on January 25, 2002.

It added that 73 per cent in value of noteholders have at this stage expressed their support.