TORONTO, March 9, 2018 /CNW/ - Banro Corporation
("Banro" or the "Company") and its Barbados-based subsidiaries (collectively, the
"Companies" and together with the subsidiaries in the
Democratic Republic of the Congo
(the "DRC"), the "Banro Group") are pleased to
announce the approval of the Companies' Amended Consolidated Plan
of Compromise and Reorganization (the "Recapitalization
Plan") by the secured creditors (the "Affected Secured
Creditors") and the unsecured creditors (the "Affected Banro
Unsecured Creditors", and together with the Affected Secured
Creditors, the "Affected Creditors") affected by the
previously announced comprehensive restructuring transaction (the
"Restructuring Transaction"). The resolution (the "Plan
Resolution") approving the Recapitalization Plan pursuant to
the Companies' Creditors Arrangement Act (the "CCAA")
was approved by 96.154% of Affected Secured Creditors and 96.296%
of Affected Banro Unsecured Creditors in number, who represent
91.112% and 91.114% respectively in value of the eligible voting
claims who were present and voted in person or by proxy on the Plan
Resolution at the Creditors' Meetings, in accordance with the order
granted by the Ontario Superior Court of Justice (Commercial List)
(the "Court") on February 1,
2018, authorizing meetings of creditors of the Companies for
the purposes of voting on the Recapitalization Plan.
The approval by Affected Creditors of the Recapitalization Plan
is a key step towards its implementation and the emergence of the
Companies from protection under the CCAA. The Recapitalization Plan
represents the best alternative for the long-term interests of the
Banro Group which significantly reduces debt, improves liquidity,
and allows the Banro Group to continue ongoing operations in the
DRC.
The Companies will proceed to seek an order (the "Sanction
Order") from the Court sanctioning the Recapitalization
Plan. The hearing for the Sanction Order was scheduled for
March 16, 2018, but will be postponed
to a date to be scheduled. Should the Sanction Order be granted,
the intention is to proceed to implement the Recapitalization Plan
by March 31, 2018, subject to satisfaction or waiver of
the conditions precedent to implementation contained in the
Recapitalization Plan.
A copy of the Recapitalization Plan and materials related
thereto are available on the Monitor's website at
http://cfcanada.fticonsulting.com/banro/ and on
SEDAR.
Banro Corporation is a Canadian gold mining company
focused on production from the Twangiza and Namoya mines, which
began commercial production in September
2012 and January 2016
respectively. Banro's longer-term objectives include the
development of two additional major, wholly-owned gold projects,
Lugushwa and Kamituga. The four projects, each of which has a
mining license, are located along the 210 kilometres long
Twangiza-Namoya gold belt in the South Kivu and Maniema Provinces
of the DRC. All business activities are followed in a
socially and environmentally responsible manner.
Cautionary Note Concerning Forward-Looking
Statements
This press release contains forward-looking statements. All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future (including,
without limitation, statements regarding the CCAA
proceedings, the restructuring process, the Company's liquidity and
ability to meet payment obligations and the timing of meeting such
payment obligations, the Company's intentions for the future of its
business operations and long-term strategy, and the Company's
commitment to its employees and suppliers) are
forward-looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to the Company.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other
things, the possibility that the Company will be unable to
implement the restructuring. In addition, actual
results or events could differ materially from current
expectations due to instability in the eastern DRC
where the Company's mines are located; political developments in
the DRC; uncertainties relating to the availability and
costs of financing or other appropriate strategic
transactions; uncertainty of estimates of capital and
operating costs, production estimates and estimated economic return
of the Company's projects; the possibility that actual
circumstances will differ from the estimates and assumptions used
in the economic studies of the Company's projects; failure to
establish estimated mineral resources and mineral reserves (the
Company's mineral resource and mineral reserve figures are
estimates and no assurance can be given that the intended levels of
gold will be produced); fluctuations in gold prices and currency
exchange rates; inflation; gold recoveries being less than
expected; changes in capital markets; lack of infrastructure;
failure to procure or maintain, or delays in procuring or
maintaining, permits and approvals; lack of availability at a
reasonable cost or at all, of plants, equipment or labour;
inability to attract and retain key management and personnel;
changes to regulations affecting the Company's activities; the
uncertainties involved in interpreting drilling results and other
geological data; and the other risks disclosed under the heading
"Risk Factors" and elsewhere in the Company's annual report on Form
20-F dated April 2, 2017 filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent
uncertainty therein. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary note.
SOURCE Banro Corporation