FWL - Voluntary Suspension from Official Quotation

Ferrowest Limited (“Ferrowest”) (ASX Codes: FWL) requests a voluntary suspension of the ordinary shares of Ferrowest to apply from the commencement of trading on Wednesday, 7 April 2015.

As previously announced, Ferrowest was due to settle the sale of the Yogi Mine Project to Padbury Mining Limited (“Padbury” ASX Code: PDY) on 31 March 2015. Padbury was unready to settle and as a consequence settlement did not occur. Ferrowest issued a Notice of Default to Padbury requiring settlement be completed. Advice from Padbury is that settlement will occur in the near future. This voluntary suspension is requested until this matter is resolved. For the purposes of Listing Rule 17.2, Ferrowest provides the following information:
1. The voluntary suspension should remain in place pending either an announcement of the:
(i) settlement of the sale of the Yogi Mine Project to Padbury; or
(ii) cancellation of the contract of sale and the effect of this outcome on Ferrowest’s business plans and operations going forward.
2. Ferrowest is not aware of any reason why the voluntary suspension should not be granted.


So, one can draw the obvious conclusions that;
1. Clearly pdy don't have the money from their additional Capital Raising. The Chinese investors have not delivered the (promised???) additional cash, yet.
2. Obviously FWL still believe the deal can be done - companies don't go into suspension lightly - one would have to think they were given some assurances that the deal would proceed....... Having said that they themselves need the cash to move on......
3. This has nothing to do with waiting until the 1st May - if the money was available from the chinese investors, this deal would have been concluded.
4. If pdy don't get the cash and have to stay suspended until after 1st May, they will have virtually no chance of raising capital - full prospectus or not - in the current market, notwithstanding their deteriorating (even further....) reputation with current holders and rumors of a class action.

So I'm no longer feeling confident that they will relist.

Worrying times indeed.
Mac



Please dyor......particularly with this one.