PERTH, Australia, Aug. 27, 2018 /CNW/ - LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) announces it has entered into restructure arrangements of certain unsecured creditors with its major shareholder Sentient Global Resources Fund IV LP.
In November 2017 LeadFX and its subsidiaries terminated the management services agreements with Enirgi Group Corporation (now Rincon Inc.) and its subsidiaries (collectively "Rincon Group"). Rincon Inc is owned by the Sentient group of funds. At the date of termination of the management services agreements, the amounts owed by LeadFX and its subsidiaries to the Rincon Group totaled approximately US$5.6 million ("Indebtedness"). The Indebtedness has been included in the Company's financial statements as a current liability.
The Rincon Group has agreed to forgive US$1.5 million of the Indebtedness and the balance of the Indebtedness of approximately US$4.1 million has been assigned to Sentient Global Resources Fund IV LP. The Indebtedness continues to be unsecured and interest free. Sentient Global Resources Fund IV LP has agreed the Indebtedness will not be due and payable before March 31, 2019.
SOURCE LeadFX Inc.
For further information: Andrew Worland, Managing Director, President and Chief Executive Officer, LeadFX Inc, Level 16, 191 St George's Terrace, Perth, Western Australia 6000, [email protected], Email: [email protected]