Argo Blockchain warned that discussions regarding its proposed recapitalization plan remain incomplete, indicating ongoing uncertainty about its future. The company is still negotiating the terms of a senior secured loan with Growler Mining, which is a central component of its survival strategy, and the loan has not yet been signed or funded.
The first High Court hearing on the restructuring is anticipated in late October, with a potential sanction in December. Under the current outline, Growler Mining is expected to take at least 80% of the company following the conversion of its loan and asset injection, while bondholders would receive equity in exchange for their debt. Existing shareholders are projected to retain their stock but face heavy dilution.
Argo also confirmed that it missed a July interest payment on its bonds, with the grace period set to expire on August 30. This missed payment underscores the significant financial pressure on the company and the urgency of resolving its recapitalization efforts.
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