Forbes & Manhattan Coal Corp.(TSX:FMC) has cancelled the deal that would see them acquire Riversdale Holdings.
As quoted in the press release:
Subsequent to the parties entering into the agreement in September 2012, and pending fulfillment of the conditions precedent contained in the agreement, the performance of ZAC deteriorated to a material extent. This, in the opinion of Forbes Coal, constituted a material breach of certain of the provisions of the agreement by RML, entitling Forbes Coal to cancel the agreement, which cancellation took place by written notice from Forbes Coal to RML on February 1, 2013.
Forbes’ President and CEO, Stephan Theron, said:
We are disappointed that the situation has necessitated this decision, but believe that cancelling the agreement is in the best interests of all our shareholders and other stakeholders in Forbes Coal.