Nordic Mining faces bankruptcy risk amid liquidity crisis

Nordic Mining is facing a critical liquidity crisis and is currently negotiating to avoid bankruptcy. Chairman Kjell Roland stated that the company is running out of cash in the near term, though it is not yet bankrupt.

Three potential outcomes are being considered: bankruptcy, debt write-downs and refinancing with existing lenders and shareholders, or the sale of the entire company. Negotiations for refinancing are ongoing and could be resolved within weeks.

The company, which operates the Engebø mine near Førdefjorden, has faced significant challenges, including equipment issues and legal setbacks. A Supreme Court ruling recently declared the state's discharge permit for the project invalid, leading to the use of a temporary permit for waste deposition in the fjord. These complications, alongside environmental protests and restructuring announcements, have contributed to a massive decline in the company's share price.