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Buying and selling in Petropavlovsk shares has been suspended following the financial debt-laden Russian gold producer reported it would file for administration in London’s High Courtroom.

The London-shown miner was plunged into disaster before this yr soon after the Uk imposed sanctions on its key loan company Gazprombank following Russia’s invasion of Ukraine.

Gazprombank demanded instant compensation of a $200mn mortgage in April, but later on assigned the legal rights to the credit card debt to UMMC-Invest, a Russian metallic producer.

In a assertion, Petropavlovsk, which mines gold in Russia’s far east and is headquartered in Moscow, stated it was “very unlikely” that it could refinance the financial loan in the near expression.

The enterprise also has $300mn of principal remarkable on a bond owing to experienced in December that it is struggling to refinance.

Attempts to uncover a buyer for its assets had drawn interest from a person social gathering, the business stated, and discussions were being continuing.

However, provided its degree of indebtedness, it stated there was no certainty that there would be any return for shareholders.

In its announcement, Petropavlovsk also integrated statements that it strategies to file with the High Court in London. A person said the firm had assets of about $1.62bn at the conclude of June and future liabilities of $1.7bn.

Petropavlovsk has been one of the few Russian groups with shares nevertheless investing in the Uk.

Its shares closed at 1.2p on Monday, down from 19p at the get started of the 12 months. At that price tag, its fairness is valued at significantly less than £50mn.

Petropavlovsk has also asked for buying and selling in its Moscow-listed shares to be halted.