Shareholders of Breakwater Resources (TSE) have approved part of a restructuring plan put forth by management.
The approved section calls for repayment of up to $10 million in outstanding debt owed to Dundee Bancorp (TSE), a major shareholder. Dundee will then subscribe for additional Breakwater common shares, having an aggregate amount equivalent to the debt repaid. The shares will have a subscription price of 15 each.
Shareholders also approved repayment of $6 million of demand debt owed by Breakwater to Dundee. Following the repayment, Dundee will buy a $6-million Breakwater convertible debenture.
Other proposals within the restructuring plan are proceeding, including a rights offering.
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