Crew Gold to convert $235 million of debt to equity

(Reuters) - Gold miner Crew Gold Corp said it has agreed to a debt-to-equity conversion deal with certain bondholders to strengthen its balance sheet, sending its shares down as much as 45 percent to a new 52-week low.

The company said it intends to convert about $235 million of debt at the company level, including about $225 million principal amount of bonds issued by it, to common shares.

Following completion of conversion, the debt holders will hold, in the aggregate, 95 percent of Crew's outstanding common shares, the company said in a statement.

The proposed debt-for-equity conversion is subject to the approval of the shareholders and holders of the senior secured bonds and holders of the unsecured debt.

Shares of Crew Gold were down 12 Canadian cents at 19 Canadian cents in late morning trade Wednesday on the Toronto Stock Exchange. They touched a low at 17 Canadian cents earlier in the session.

(Reporting by R. Manikandan in Bangalore; Editing by Unnikrishnan Nair)