The debt-to-equity conversion plan to get Thistle Mining (THT-T) out of insolvency is complete, and a new board of directors, proposed in the restructuring plan, has been appointed.
The restructuring gives effective control to two secured debt holders, Meridian Capital and Waterford Finance and Investment, two privately-held companies based in Britain. Each will hold 35% of the refinanced company’s shares, through subsidiaries MC Resources and Casten Holdings.
Holders of Thistle’s debt notes will receive 11.5 million shares, representing a 25% interest in the company, and existing shareholders will be diluted to a 5% shareholding by a 1-for-200 consolidation.
The new board keeps its chairman, Lord Lang of Monkton, and takes on Alexey Kruzhkov, the London-based executive director of Waterford; Askar Dostiyarov, a Kazakh businessman and executive director of Meridian; Barry Goldberg of Genuity Capital in Toronto, and lawyer Jeffery Barnes of Fraser Milner Casgrain.
The highest-profile appointee to the board is Yury Shafranik, former Russian Minister of Fuel and Energy and now chairman of Russian-Belarussian oil company Interstate Oil. Shafranik made several high-profile visits to Iraq to arrange Russian oil ventures in the country before the U.S.-led invasion of the country in 2003.