Petra Diamonds Must Restructure Debt Despite Strong Recovery

SA’s second-largest diamond producer has noted a one-fifth increase in rough diamond prices as its three SA mines recovered from the lockdown, but it’s not enough to stave off a massively dilutive debt restructuring plan, Business Day reported. London-listed Petra Diamonds, which is engaged in a plan to address a $650m bond that falls due in 2022 and which would dilute existing shareholders to a mere 9% stake in the miner, reported a decline in production in the quarter to end-September, the first of its financial year. Consolidated debt was $688m at the end of September. Petra has reached an agreement in principle with the bond holders — who will take a 91% stake in the enlarged equity of Petra in exchange for $400m of their bonds — and a consortium of SA banks. Read more