Boart Longyear: administration talk 'incorrect'

Drilling services firm blames share price slide on speculation it cannot refinance debt.

Boart Longyear (BLY) has blamed a heavy sell-off in its share price on "incorrect" media speculation that the drilling services provider may be headed into administration.

Shares in Boart Longyear were 12.82% lower at 16.5c at 3.23pm (AEST), against a benchmark index fall of 1.12%. The group's shares fell as low as 15.5c in earlier trade.

Boart Longyear responded to a price query from the ASX by saying the sell-off may be due to media reports about its strategic review suggesting the company had not been able to refinance its debt or recapitalise and was headed for administration.

"The company notes that such speculation is incorrect and that it continues to engage in the strategic review with a number of third parties on a range of potential proposals," Boart Longyear said.

The group said trading conditions remain weak and half-year results could differ materially from current market consensus estimates, but said its financial results were not yet available and that the share price drop was not due to speculation about results.

Boart Longyear confirmed it was in compliance with its continuous disclosure obligations.

The firm has earlier warned on a "deep and prolonged" downturn in the mining industry as investment winds down and firms scale back their use of contractors.

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