ASATUNEWS - billionaire Anthoni Salim are trying to rescue Atlantic Ltd. , the world's largest miner of vanadium , from bankruptcy . According to three sources , Salim was discussing with some bondholders Atlantic from the United States about the bailout package .
According to sources , Droxford International Ltd , an investment vehicle Salim , would like to offer financial aid of 33 million Australian dollars to the Atlantic . Atlantic 's own shares suspended since early February after a factory fire at Windimurra vanadium project in Western Australia state , said sources . Agreement on this package is dependent on the company's management reshuffle in the body .
Had become the darling of the Australian stock market , the market valuation of the Atlantic has now dropped to A $ 27 million . At its peak in 2011, the market value of A $ 367 million . This is due to the fall of the price of vanadium - industrial metal used to strengthen steel in a variety of finished products , from a wrench to a jet fighter .
In addition to the fire , a number of problems that occurred previously in the factory making the Atlantic can not meet production targets . The company was forced to tighten cash flow , so that the negative sentiment on the shares . As a result, management of the Atlantic are now highly dependent on the loan in order to continue the project . Previously the company predicts could meet up to 7 % of global vanadium demand .
Total debt Atlantic to the investors stood at A $ 483.5 million , with Droxford belonging to Salim as the largest individual creditor . Droxford has injected capital into the Atlantic at A $ 22.6 million and an additional A $ 148.5 million in loans and unsecured convertible bonds since 2010 .
Atlantic itself has submitted a claim to his insurance , Lloyd 's of London , to patch up losses from the mill fire . Atlantic recently announced it has received a $ 3.1 million and expects to receive compensation up to A $ 100 million . When the claim is being examined , the Atlantic may need an injection of funds to pay salaries, suppliers , and the repayment of interest on loans previously proposed .
Salim did not respond to requests for comment by phone and email . Atlantic and its CEO , Michael Minosora , could not be reached . Droxford in Perth law firm , Herbert Smith Freehills , declined to comment . | WSJ
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