Nathaniel Rothschild, a British financier of the legendary Rothschild banking dynasty, has suggested that Asia Resource Minerals (ARM) raise funds in a stock sale he is planning to underwrite, according to Bloomberg. Rothschild owns 17% of outstanding shares in the troubled Indonesian coal miner that is $950 million in debt. Austria’s Raiffeisen Bank International (RBI) now has voting in 23% of the company, a stake that belonged to Chairman Samin Tan, who was not able to meet the terms of loan.
Coal prices have declined dramatically, and this has had a devastating effect on many producers, some of whom have filed for bankruptcy. Glencore announced it would slow down production, which should have a positive impact on prices. ARM shares rose 14% in London on the news of the stock sale that may lift it out of debt. “The option was never available before because Samin Tan was unable to contribute new equity, ” Rothschild said.
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