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Volcan Special Credit Report – Too much equity value for this to end up badly

For quite a few months already, Volcan has been in the headlines thanks to its liquidity troubles. The Peruvian mining company has had principal payments on their syndicated loan extended, and continues negotiating with creditors.

Volcan is seeking to extend the maturity of the syndicated loan to 2029 (from 2026) and the bonds to 2030 (from 2026). A tearsheet has already circulated. Finally, major shareholder Glencore sold its participation to Argentinian private equity firm Integra Capital. A lot has been talked about the possible sale of non-core assets, but only recently has something materialized.

Given that negotiations are currently in progress, here we present a report focusing on what we believe are the key elements in the negotiations, rather than a longer full-blown credit report explaining the company in more detail.



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