The Toronto-listed company proposed to amend the exercise price on 10 million outstanding warrants and exchange company shares to bondholders for $US25 million in bond principal.

Under the plan, the exercise price of existing warrants would be changed from $C1.15 to 9c and 1.4 million new warrants would be issued on a three-year term at the new price.

Bond holders would be offered principal in exchange for two billion common shares in the company and current shareholders would receive rights to subscribe for up to 1.7 billion shares at the reduced price of 2c.

Cline’s share price has dropped 25% since late December and closed at 6c after Wednesday trading.

To enact the restructuring, Cline has applied for an exemption from shareholder approval on the basis of financial hardship.

The company contended that the immediacy of its need to address the restructuring did not afford sufficient time to hold a shareholder meeting.

Due to the financial hardship exemption application, the Toronto Stock Exchange has placed the company under remedial delisting review.

On December 18, the company announced it was unable to make a semi-annual payment of interest on its bonds in the amount of $US2.5 million because of financial difficulties associated with the suspension of operations at its New Elk metallurgical coal mine in Colorado.