UPDATE 1-Nickel miner Talvivaara gets debt cut plan, still lacks financing

Tue Sep 30, 2014 7:44am EDT
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* Debt would be cut by up to 99 pct in 8-year plan

* Government minister hints at more bailout help

* Shares fall 24 percent (Adds share reaction, government comment, background)

By Jussi Rosendahl

HELSINKI, Sept 30 (Reuters) - Finnish nickel miner Talvivaara lacks the long-term financing it needs to avoid bankruptcy, it said on Tuesday after an administrator proposed an eight-year restructuring plan that includes slashing its debts by up to 99 percent.

Talvivaara listed to great fanfare in London in 2007 when nickel peaked at around $51,000 per tonne.

But nickel prices have more than halved, and hurt by repeated production disruptions and environmental damage, the company last year suspended its mining operations and started a court-led debt restructuring process to avoid bankruptcy.

The administrator on Tuesday proposed Talvivaara's unsecured debts of around 1.4 billion euros ($1.8 billion), including group internal debt, be cut by 97-99 percent. The plan could involve a share issue, which the administrator warned could dilute the company's shares.

It shares fell as much as 24 percent on Tuesday.   Continued...