Today's West Australian - if Korte and Scott have quit, how come...

Today's West Australian - if Korte and Scott have quit, how come no announcement of Directors' resignations ?

Low-profile Swiss banker Germano Valle has emerged as the frontrunner to pick up the collapsed miner Windimurra Vanadium.

It is understood Mr Valle, who through his investment vehicle Gersec Trust held 5.6 per cent at the time of Windimurra's collapse in February, is close to striking a recapitalisation deal with the vanadium hopeful's receiver, KordaMentha.

KordaMentha partner Brian McMaster would not comment on talks with potential bidders but said he remained confident of concluding a deal by the time Windimurra creditors are due to meet late next month.

But it is expected that Mr Valle's proposal is leading a rival bid from Indian group Siva.

It is expected that Mr Valle will have the support for any bid from Windimurra's biggest shareholder, fellow Europe-based group Matterhorn Investment Management which held a 12.3 per cent stake.

The European shareholders had previously joined forces in forcing boardroom change at Windimurra.

Given the two parties' substantial equity investment in Windimurra, a recapitalisation proposal is considered more likely than a buyout of the collapsed miner's namesake vanadium project, near Mt Magnet, which is 90 per cent complete.

Mr McMaster was appointed by a Merrill Lynch syndicate of lenders, which is owed about $US125 million ($135 million), secured against the vanadium project. Windimurra had spent about $200 million on developing the controversial project when it ran out of cash, sparking its slide into administration and receivership because of an inability to raise the extra $80 million required to complete construction.

Since then investor sentiment towards metals projects has improved markedly, led by a more positive outlook for the steel industry. Vanadium is used in specialty steel products.

Windimurra's pre-collapse management team, including managing director Iain Scott and chief financial officer Garry Korte, is no longer with the company and not expected to be re-employed by the new owners.

The role of Hong Kong trader Noble Group, which had an vanadium offtake agreement, in any recapitalisation process remains unclear.