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The company has appointed RFC Ambrian to assist in engaging with stakeholders regarding restructuring options.
RFC has engaged former Glencore head of iron ore assets Mark Eames to assist.
Eames will likely join the Sundance board if a suitable restructure is achieved.
Sundance has convertible notes on issue with a face value of $A93.5 million and a redemption value of $116.8 million.
There are $2.5 million worth of notes due in December to shareholder Hanlong Mining, but the remainder are due in September next year.
The company said there was no ongoing obligation to make interest payments, except for the Hanlong notes, which can be converted into equity at either party’s discretion.
Sundance is in discussions with stakeholders regarding the capital structure and reported it had received positive initial feedback.
The company also has more than 6 billion shares on issue after issuing more than 2.1 billion shares as part of an entitlement issue in March.
The raising was required to pay for a costly court settlement with former consultant, and now major shareholder David Porter.
Sundance closed March with $4.3 million cash.
Discussions with the Cameroon government and Chinese contractors are continuing regarding the rail and port infrastructure for Mbalam-Nabeba.
“Sundance has successfully faced up to the challenges of the past six months, including a severe downturn in the iron ore market, the conclusion of a complex litigation process and changes in the timing of the EPC contract for port and rail development,” Sundance CEO Giulio Casello said.
“The logical next step in responding to current market conditions and likely development timing is to ensure that the company’s balance sheet is appropriately structured.”
Shares in Sundance slumped 40% to 0.3c, equalling the all-time low.
