Unfortunately for its shareholders, the Paladin Energy Ltd (ASX: PDN) share price won't be going anywhere any time soon.
This morning the uranium production company's board announced that it has appointed administrators.
Why have administrators been appointed?
On July 10 Paladin is required to pay Electricite de France (EDF) approximately US$277 million under a long term supply agreement signed in 2012.
The company had requested EDF to grant a standstill to allow time for its Alternative Restructure Proposal to be implemented.
However, EDF has informed Paladin that it is not prepared to enter into a standstill agreement and requires payment of the amount when it becomes due on 10 July 2017.
As a result, the board met today and resolved to appoint administrators.
Administrators will now undertake a financial and operational assessment and intend to continue to operate the company on a business as usual basis until further notice.
Shareholders are requested to continue to monitor ASX announcements – not that there should be many left given our several warnings since 2012, including here, here and here.
