The many twists and turns in Talvivaara’s fortunes continue to test the faith of individual investors. Antti Kejo, chair of the Kainuu shareholders association said household investors are looking on at the restructuring proposal with interest.
“Our faith now depends on what happens with the restructuring proposal. On whether or not the creditors accept it in their vote so that it can go ahead. And if Talvivaara can get the financing it needs to continue operating,” Kejo added.
The mining operation has been plagued by all manner of reversals: heavy financial losses, crushing debt, environmental damage and most recently, criminal charges related to its poor environmental record. The restructuring proposal filed with the Espoo district court aims to resuscitate the company by relieving the debt problem and attracting new financing. It's now up to the company's creditors and the court to give the mining concern a new lease on life.
Shareholders' rep: Talvivaara could still be a good investment
Kejo said he thinks it’s still possible that Talvivaara shares could turn out to be a worthwhile investment.
“On the one hand it’s positive that they were able to present a reorganisation plan to the court. On the other it’s negative that a rather large proportion of the debt will be cut. Does that mean that the operation can’t be made to be profitable in any way? However one option was that there should be additional financing.
“Of course in the long run it’s not impossible for this to take a positive turn,” Kejo reflected.
Talvivaara’s Kainuu mining operation in Sotkamo has major significance for employment in the region. The small shareholders’ representative said he hoped that the operation would continue to function in one form or another.
