Westpac calls in receivers for Allmine
The company's banker, Westpac, appointed receivers on Friday following the appointment of administrators and the resignation of managing director Paul Kreppold on Thursday.
Reasons for the sudden collapse were unclear on Friday night, as was the size of Allmine's debt load - although a cash-flow statement filed with the ASX shows that as of March 31 it owed $10.9 million to Westpac.
Allmine had been battered by a downturn in the mining services sector, with staff numbers shrinking from 570 a year ago to 132.
It made a profit of $1.8 million in the 2012 calendar year, down from $12.7 million the previous year.
In late May, the company said it was "in discussions with its primary lender regarding potential technical breaches of its banking facility".
However, early this month it said it had signed a non-binding memorandum of understanding with Rex Minerals and China NonFerrous Metal Industry's Foreign Engineering and Construction Co to develop a copper and magnetite project in South Australia.
Allmine renegotiated its debt in April, telling the ASX that it had secured a $16 million senior debt facility and a $15 million bonding facility.
While it did not name its financiers, company documents show that as of the end of December Westpac was its main lender. The federal government through its Export Finance and Insurance Corporation provided the bonding facility, which was used to pay performance bonds to Allmine customers.
Cliff Rocke and Scott Langdon of KordaMentha have been appointed receivers, while Kim Strickland and David Hurt of WA Insolvency Solutions are administrators.
Ellerston Capital sold off its stake in Allmine in early April, following Mr Packer's exit from the Ellerston board last year.
Frequently Asked Questions about this Article…
Allmine Group collapsed after a sudden deterioration in its position. Westpac, Allmine’s main lender, appointed receivers following the company’s appointment of administrators and the resignation of managing director Paul Kreppold. The article says the exact reasons for the collapse were unclear, although the company had been hit hard by a downturn in the mining services sector.
A cash-flow statement filed with the ASX shows Allmine owed $10.9 million to Westpac as of March 31. The overall size of Allmine’s total debt load was unclear in the article, but that figure to its primary bank was specifically reported.
Cliff Rocke and Scott Langdon of KordaMentha were appointed as receivers, while Kim Strickland and David Hurt of WA Insolvency Solutions were appointed as administrators, according to the article.
In April Allmine renegotiated its debt, saying it had secured a $16 million senior debt facility and a $15 million bonding facility. Company documents show Westpac was its main lender, and the federal government, through the Export Finance and Insurance Corporation (EFIC), provided the bonding facility used to pay performance bonds to customers.
Yes. Earlier in the month Allmine said it had signed a non-binding memorandum of understanding with Rex Minerals and China NonFerrous Metal Industry's Foreign Engineering and Construction Co to develop a copper and magnetite project in South Australia. The MOU was non-binding and the article does not say whether that deal would proceed.
Allmine’s profit fell sharply — it made $1.8 million in the 2012 calendar year, down from $12.7 million the previous year. The company’s workforce also contracted significantly, from 570 staff a year ago to 132, reflecting the downturn in mining services cited in the article.
Ellerston Capital had been described as a keystone investor in Allmine. The article reports that Ellerston Capital sold off its stake in Allmine in early April, following James Packer’s exit from the Ellerston board the previous year.
The article states receivers and administrators have been appointed but does not detail outcomes for shareholders or creditors. Generally, receivership and administration mean insolvency specialists will assess assets, liabilities and claims; any returns to investors or creditors depend on the outcome of that process and the ranking of claims. At the time of the report, the specific impacts and recoveries remained unclear.
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