Banro Announces Commencement of Court-Approved Sale and Investment Solicitation Process

TORONTO, January 22, 2018 /PRNewswire/ --

On December 22, 2017,  Banro Corporation ("Banro") and its Barbados based subsidiaries (collectively, the "Companies") commenced restructuring proceedings under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an initial order granted by the Ontario Superior Court of Justice (Commercial List) (the "Court").  FTI Consulting Canada Inc. has been appointed Monitor (the "Monitor") of the Companies for the CCAA proceedings.

Pursuant to an order of the Court dated January 18, 2018, the Companies have today initiated a sale and investment solicitation process ("SISP") to be conducted in conjunction with the CCAA proceedings. The Initial Order provides that the Monitor will assist the Companies in conducting the SISP.  Banro and the Monitor, through its affiliate, FTI Capital Advisors ULC ("FTICA"), are seeking parties interested in acquiring or investing in the business or the assets of the Companies in a manner that is determined to be a superior offer to the Recapitalization Plan under the CCAA process.

Interested parties will be given an opportunity to submit offers for the acquisition of the business and assets of some or all of the business and assets of the Company and its subsidiaries (i) for cash proceeds equal to the outstanding amount of the DIP Facility, the priority debt, 75% of the affected parity lien debt of Banro, and cash consideration sufficient to repay all amounts due under the stream agreements or treatment of the stream agreements on the same terms as the Recapitalization Plan, or (ii) on other terms determined to be superior to the Recapitalization Plan, in accordance with the terms of the SISP (capitalized terms as defined in the SISP).  The operating assets of the Companies include the Namoya Mine and the Twangiza Mine located in the Democratic Republic of the Congo.

Under the SISP, potential buyers will be provided a confidential information memorandum and access to a virtual data room on execution of a non-disclosure agreement acceptable to Banro and the Monitor.  The deadline for submission of non-binding letters of intent is 12pm (Eastern Standard Time) on March 2, 2018, and the deadline for submission of binding bids is 12pm (Eastern Standard Time) on April 9, 2018.