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- Feronia Inc.
Feronia Inc.
Feronia Inc. (TSXV:FRN), a Toronto, Ontario-based company which operates palm oil plantations in the Democratic Republic of the Congo (“DRC”) with its subsidiaries (collectively, the "Feronia Group"), filed an NOI on July 23, listing approximately $38.4 million in liabilities, including $30.4 million to the CDC, a UK development finance institution. The Feronia Group experienced significant financial difficulties for multiple years due to depressed market prices, unfavourable operating conditions, and delays in certain capital projects. As of June 30, the Feronia Group had funded debt obligations totaling approximately $86.0 million (USD). In May, the company entered into a restructuring support agreement with its key stakeholders, which provides for, amongst other things, a back-stop offer from Straight KKM 2 Ltd. ("KKM"), one of the company's largest shareholders. In the same month, the company engaged EY as financial advisor to conduct a sale process to market and sell its interest in the DRC operating subsidiary. As a result of the sale process, the company and KKM negotiated and entered into a purchase agreement. While under creditor protection, the company intends to bring a motion to seek court approval of the purchase agreement and sale transaction. EY is the proposal trustee. Counsel is Aird & Berlis for the company and DLA Piper for KKM.