Reuters reported that Coalcorp Mining Inc failed to make USD 6.9 million interest payment on senior secured notes, saying it wanted to preserve cash.

As per report, stock in Toronto listed Coalcorp fell more than 12% to 25 Canadian cents in mid afternoon trade. The firm, which has interests in the La Francia coal mine and related infrastructure projects in Colombia, said that it has 30 days to make the payment on the 12% senior secured notes in order to avoid an event of default.

Coalcorp said in a statement that the company is not making this payment to preserve its cash position as it reviews its strategic alternatives. The company is currently considering various options in order to satisfy its obligations under the senior notes in accordance with the terms of the indenture.

(Sourced from Reuters)