Westpac calls in receivers for Allmine
Allmine Group, which once boasted James Packer's Ellerston Capital as a keystone investor, has collapsed owing millions to Westpac and the federal government.
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.