OREANDA-NEWS. Hong Kong-listed coking coal trading firm Winsway Enterprises said it needs more time to close the sale of its stake in Canadian coal producer Grande Cache.

Some conditions of the sale of its stake in Grande Cache have not been satisfied or waived for the sale to go through by a 20 July deadline, Winsway said. Winsway agreed last year to sell its 43pc stake to China-based investor Up Energy Development for a \\$1 nominal cash payment. The parties are still negotiating in good faith and Winsway has not received any notice to terminate the deal, the company said.

Grande Cache has a 2mn t/yr low-volatile hard coking coal capacity and sells primarily to Asia and Brazil.

Winsway separately said it has extended a standstill agreement with bondholders until 31 July while it seeks an equity investor and restructuring of its debt. Winsway defaulted on a \\$309mn bond on 11 May as a result of mounting losses caused by a fall in coking coal prices and reduced Chinese coking coal imports.

Winsway sold 9.3mn t of coal and coal-related products last year, including 2.3mn t of Mongolian coal that had been a major part of its purchasing strategy.