A bit more colour on the previous report. C'mon @FullHouse - you...

A bit more colour on the previous report. C'mon @FullHouse - you can talk to us. We won't tell anyone.

https://au.news.yahoo.com/thewest/wa/a/28766990/ellendale-issues-as-administrators-check-the-books/

Ellendale ‘issues’ as administrators check the books
Nick Evans
July 12, 2015, 12:55 pm

Kimberley Diamonds registered a $1.9 million secured debt over the assets of its collapsed Ellendale mine only a month before calling in administrators to its operating subsidiary.

Chris Williamson, of administrators Jirsch Sutherland, told a packed creditor’s meeting yesterday he had formed a preliminary view that “there are issues” with the charge.

The charge appears to relate to an inter-company loan to its parent, which sat at $8 million at the end of last financial year. It is unclear when and how the $6 million was repaid, and why security was only recently registered.

KDL did not respond toWestBusiness questions about the debt yesterday.
  
None of the subsidiary’s directors — Alex Alexander, also chairman of Kimberley Diamonds, Noel Halgreen and Rodney Sainty — were at yesterday’s meeting.

Mr Williamson said he was yet to be provided with a report into the state of the company’s affairs.

Mr Williamson told the meeting unsecured creditors were owed about $13.5 million. Its only secured creditor is its parent company, which was unaffected by the collapse of its only revenue-generating subsidiary at the end of June. Two of Ellendale’s own subsidiaries are also owed more than $17 million.

The $1.9 million secured debt puts KDL ahead of the mine’s contractors when any money raised from the sale of Ellendale assets is distributed.

He said there was little money in Ellendale’s bank account when administrators were called in on June 30.

But proceeds from a recent sale of diamonds in Antwerp should come to the operating subsidiary shortly.

Another 26,000 carats worth of diamonds were still awaiting sale in September, Mr Williamson said.

He said the June sale of vehicles and plant from Ellendale would be investigated.

KDL did not respond toWestBusiness questions about the asset sales on Tuesday, but yesterday said the proceeds were paid into the Ellendale subsidiary’s bank account.

KDL did not respond yesterday to questions about why no director’s report was provided to the meeting.