Subject to confirmation from the TSX, Cline expects that the shares will be delisted at the close of trading on June 21.

The company previously announced it had been placed under remedial listing review by the TSX, which was deferred pending completion of the proposed rights offering.

Following the June 3 announcement that it would not go ahead with the rights offering, Cline has decided to delist its shares from the exchange.

"At the present time, continued listing on the TSX is not feasible for Cline and does not fit with its current business strategy,” executive chairman Mark Haywood said in a statement.

“The company expects that after delisting it will have additional flexibility with respect to financing options."

Cline said it was in negotiations will Marret Asset Management in respect to alternative financing.

“Cline does not expect to have sufficient funds to pay the $3.4 million interest payment due on June 17, 2013 to its existing bondholders,” the company said in the statement.

“Cline is also negotiating a forbearance agreement with Marret, on behalf of existing bondholders, that would address the June interest payment.”

With the news, the company also announced that two members of its senior management team have resigned effective immediately.

Chief financial officer Ernest Cleave, who has served in the role since 2009, and chief operating officer David Stone both tendered their resignations.

Cline reverted to the Marret plan restructuring transaction in April after alternative Singapore-based private company Portpool Investments did not meet an initial deposit deadline.

The company had said earlier in the month that it would pursue its previously negotiated restructuring plan with Marret; that transaction was first announced in December 2012.

At that time, Cline president and chief executive officer Ken Bates blamed the necessity of the restructuring on macro factors hammering the industry as a whole.

“The restructuring is an important step in the company’s efforts in developing a long-term financial solution to address the uncertainty regarding the magnitude and extent of the downturn in the coal markets,” he said.

Cline Mining holds significant metallurgical coal property interests in British Columbia as well as at the New Elk complex in Colorado.

New Elk’s inferred coal resources total is 104.5Mt; it comprises the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.

The complex’s seams are classified as low-sulfur, high-volatile B bituminous coal and can be marketed as a high-ash metallurgical-grade coal, a pulverized coal injection coal or a thermal coal.