The junior South African coal miner warned on Wednesday it could enter voluntary administration if it could not secure restructuring or refinancing arrangements with convertible note holders and other creditors.
The mood seemed better in its latest announcement, with Continental “optimistic” about reaching a deal to allow it to continue trading as a going concern.
“The directors would like to acknowledge the continued understanding demonstrated to date by creditors and financiers while the company seeks to complete the recapitalisation,” Continental said.
The junior aims to settle convertible notes that mature from November 2013 to February 2014 and has previously blamed lower than expected production at its new Penumbra underground operations for its financial position.
The company was previously known as Continental Capital before it started acquiring second tier South African coal assets in 2009.
Its shares remain frozen at 2c each.
