TORONTO, March 4 /CNW/ - As announced today by Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ), AES Gener S.A. ("AES") commenced a proceeding (the "AES Proceeding") at the Supreme Court of the State of New York, which was removed to the United States District Court for the Southern District of New York (the "Court") seeking a temporary restraining order and preliminary injunction requiring Coalcorp's subsidiary, Compania Carbones del Cesar ("CDC") to retain a minimum of USD$30,747,000 from the proceeds of the previously announced proposed sale by CDC of the La Francia mine and related infrastructure assets to a subsidiary of The Goldman Sachs Group, Inc. (the "Proposed Transaction") upon the successful completion of the Proposed Transaction. As announced earlier, a hearing was held this morning at the Court.
At the hearing the Court issued a temporary standstill order to consider arguments to be made at a hearing scheduled for 2:30 pm (EST) on March 9, 2010. Under the standstill order the Proposed Transaction cannot close prior to the conclusion of this hearing. Therefore, the earliest potential closing date for the Proposed Transaction is March 11, 2010.
As a result of the foregoing, Coalcorp's outstanding offer to repurchase its outstanding 12% senior secured notes (the "Offer for Notes"), which expires on the business day immediately prior to the closing date of the Proposed Transaction, will now expire no earlier than 5:00 p.m. (Toronto time) on March 10, 2010. The Offer for Notes has been filed and is available on SEDAR at www.sedar.com.
Coalcorp is currently a coal mining, exploration and development company with interests in the La Francia coal mine and related infrastructure projects and a number of coal exploration properties, all located in Colombia. Coalcorp also holds a 60% equity interest in Carbones Colombianos del Cerrejon which owns the La Caypa coal mine in Colombia. Further information can be obtained by visiting our website at www.coalcorp.ca or under the Company's profile at www.sedar.com.
Forward Looking Statements Disclaimer
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Coalcorp does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Coalcorp Mining Inc.
For further information: For further information: Juan Carlos Gomez, Interim Chief Executive Officer, +57-1-658-5050 Ext: 9990