Reports from Bloomberg suggest London Mining Plc (LOND), a Sierra Leone iron-ore producer is running out of funds due to Ebola. The company claims investors have refused to lend to it because of Ebola.
The company is also facing a hard time as iron ore prices fell to a five year low. These twin set of problems may likely cause the company to default on its $200 million loan lent to it by four banks, one of which is First Bank.
The others are FirstRand Ltd. (FSR), Africa’s largest lender by market value, Togo’s Ecobank Transnational Inc. (ETI) and Standard Chartered.
The article claims London Mining Plc may go into liquidation since no one is willing to lend to them and they are cash strapped.
First Bank shares closed lower today at N12.06.
Get the article in Bloomberg