In summary
Leading cause of failure was the delays in the CIL plant. This was what put them behind the 8 ball and it was all downhill from there. The weather events broke their back. (the directors didn't see it this way, they just blame the rain)
Prior to administration, management were trying to flog everything off while raising capital to keep running
Administrators called in
Quintana steps in and appoints Receivers.
The receivers have put the assets up for sale.
Recievers believe that there will be a 32 mil shortfall for Quintana after sale (and fees deducted of course)
The DOCA was proposed around a recapitalisation from everblu capital
The details of this are a bit sketchy but it would have to return more to Quintana than just a sale.
This was interesting
preliminary investigation indicate $17.8m of potential recoveries
$11.4 for insolvent trading and $6.4 for unfair preferences
They don't believe the directors were in breach of duties.
Even if the DOCA gets up shareholders will need to invest to get a return of cents in the dollar.
Time to put this one to bed.
You will get your losses next FY
KBL Price at posting:
0.1¢ Sentiment: None Disclosure: Not Held
