Condor Blanco Mines’ former CEO Glen Darby
Three former directors who presided over the failure of ASX-listed Condor Blanco Mines, including its controversial founder Glen Darby, have claimed they are owed $48,000 each in severance payments.
Administrator Domenic Calabretta yesterday told a creditors’ meeting, attended byThe Australian via proxy, that the failed mining exploration company had cash of just $200, a worthless mining tenement in Chile and $756,945 in debts.
Mr Darby was replaced as a director of the company last week, with three activist shareholders joining the board, the day after it was placed in administration having burned through over $22 million of investor funds. In the days leading up to the company’s failure, its two other directors, chairman Michelle Feruglio and director Lia Darby, Mr Darby’s sister, resigned from the company.
In highly unusual provisions, Condor Blanco’s accounts provided for a “termination payment” for directors of $24,000 if they had held their position for six months or less if sacked, or $48,000 if their tenure was “six months or greater”.
Mr Calabretta said aside from the $146,000 in termination payments, the three former directors claimed to be owed about $224,000 in unpaid super and directors’ fees with the bulk of that claimed by Mr Darby.
Neither Mr Darby, Ms Darby nor Ms Feruglio attended yesterday’s meeting and were instead represented by Chris Matthews, who said he represented about 10 creditors by proxy. Two representatives of corporate watchdog the Australian Securities & Investments Commission were present at the meeting as observers.
Mr Calabretta, who was appointed as voluntary administrator by Mr Darby, said he would be charging $70,000 plus GST for his appointment.
He told the meeting the remaining value in the company lay with its ASX listing.
“There may be some interest in the shell, or a new business entering the shell to inject more capital into the company,” Mr Calabretta said.
Listing companies on the ASX is relatively expensive and shell companies can be sold off for about $2m. It is understood the new directors of Condor Blanco, the three activist shareholders including Mr Farquhar, are seeking to have Mr Calabretta removed as administrator.
They are understood to argue Mr Darby placed the company in administration knowing that the following day he was likely to be ousted as a director at a scheduled investor meeting and that his views on the solvency or otherwise of the company could not be given much weight in light of his lengthy criminal history.
Mr Darby has criminal convictions for resisting arrest, high-range drink diving and sexual assault.
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