(Boursier.com) — The mining group Eramet has confirmed an agreement on the existing debt of its loss-making nickel subsidiary, SLN. Following discussions held in recent weeks, the French State and Eramet have agreed on an agreement to neutralize the weight of SLN’s debt in the Group’s consolidated accounts.
The 320 ME of existing State loans to SLN, currently consolidated as financial debt in Eramet’s accounts, will thus be transformed into quasi-equity, comparable in accounting terms to equity in the consolidated accounts.
Eramet will similarly convert the existing intra-group debt of 325 ME according to the same scheme. This conversion has no impact on the Group’s consolidated accounts but allows pari passu treatment of the State’s and Eramet’s debts.
The Eramet group also reiterates its decision to no longer grant new financing to SLN, in order to preserve the Group’s balance sheet. However, in parallel with potential financial support from the State and New Caledonian communities within the framework of the nickel pact in order to ensure the continuity of activity of the SLN, Eramet will continue to support the SLN operationally over the long term.
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