On April 15, 2025, Conuma Resources Ltd. completed a debt restructuring to exchange up to US$140 million of its US$250 million senior secured notes for priority notes. Additionally, the company issued US$50 million of new priority notes and raised US$25 million of new money from its financial sponsors through the issuance of preferred shares and committed an additional US$25 million if liquidity falls below C$40 million. We view this transaction as distressed and tantamount to a default because a significant portion of existing noteholders were primed as part of this transaction, which required an amendment to the indenture. As a result, we lowered our long-term issuer credit rating on Conuma to 'SD' (selective default) from 'CCC+' and our issue ratings
