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Madagascar's Ambatovy nickel task companies submit reorganizing plan -Sumitomo representative

Madagascar's Ambatovy nickel project business filed a debt restructuring strategy with an English court in London on Wednesday, a spokesperson at the project's major investor Sumitomo Corp said.

Sumitomo owns a 54.2% stake in the project business - Ambatovy Minerals, a mining company, and Dynatec Madagascar, a. refining business - while the staying stake is held by Korea. Mine Rehabilitation and Mineral Resources.

The filing becomes part of their effort to make sure the steady and. efficient operation of the job, not a liquidation process,. the representative told Reuters.

The representative did not offer information of the financial obligation. reorganizing plan and future plans for the task, saying we. are still thinking about all choices.

The Japanese trading house has actually been having a hard time to stabilise. production and enhance profitability at the Ambatovy task,. which released in 2005.

In May, Sumitomo CEO Shingo Ueno stated that the business will. consider all possible options to choose the best future policy. of the Ambatovy task for all stakeholders.

Asked whether a withdrawal was among the choices, Ueno stated. at the time that Sumitomo's instant top priority is to bring back. nickel production to typical levels by repairing problems at the. plant.

The job produced about 8,000 metric lots of nickel. throughout the April-June quarter, below about 10,000 loads a. year earlier, Sumitomo stated in July. It anticipates a yearly. production of around 35,000 loads for the year to March 31.

Sumitomo reserved a disability loss of 89 billion yen ($ 616. million) on the job for the fiscal year ended March 31,. decreasing the job's book value to absolutely no.

The Japanese business is still assessing the effect of. Ambatovy's latest financial obligation restructuring plan on its revenues, the. representative stated.

(source: Reuters)