Brazilian mining and metals company Paranapanema has presented a proposal to securities regulator CVM to issue convertible debentures worth up to 900 million reais (US$541 million), according to Business News Americas. The offering is part of a financial restructuring agreement between the company and its primary shareholders including pension funds Previ, Sistel and Petros, as well as BNDESpar, the private equity arm of national development bank BNDES. The debentures will be convertible into shares
The group abandoned a plan to carry out an initial public offering of shares earlier this year, due to unfavourable market conditions. At the end of 2007 Paranapanema’s debt stood at 1.3bn reais (US$741million). The company reported a 109 million real loss in 2007.
The group’s businesses include copper smelting and fabricating and fertilizers as well as the Minercão Taboca tin operation. Group tin production is set to rise to around 8,000 tonnes this year following the planned completion in June of a re-vamp and expansion of mineral processing capacity at the Pitinga mine.
