Business

Cockatoo Coal's troubles may be linked to an $81m bank g'tee

UPDATE, 1pm: Cockatoo Coal's move into administration on Tuesday has coincided with a November 16 deadline linked to an $81 million bank guarantee.

On October 9 the company announced that it had received a notice from Australia and New Zealand Banking Group Limited (ANZ) stating that the bank would be terminating the company's $81 million bank guarantee facility (LC Facility) on January 15.

On termination, all amounts under the LC Facility will become repayable.

Currently $10 million of the facility is cash backed and $37 million is backed by letter of credits.

Under the terms of the notice, Cockatoo Coal had to provide ANZ with an update as to arrangements for repayment of the amounts outstanding on November 16 and December 15.

The company has previously said it was exploring options for the refinancing of the amounts outstanding under the LC Facility and would further update the market with any material developments.

On 20 October the company announced the sale of its Kingaroy tenement EPC 882 to Moreton Resources Group for $300,000.

It said the sale of this "non-core asset aligns with Cockatoo's strategy of focusing on the expansion of its flagship metallurgical coal mine at Baralaba".

The Morning Bulletin has invited Cockatoo Coal to respond to questions regardinh the $81m guarantee.

 

6am: ADMINISTRATORS have been appointed to Cockatoo Coal Limited, but the company says staff will continue in their current roles while its operations are reviewed.

Cockatoo is an Australian-based metallurgical coal producer with an operating coal mine in Baralaba.

The company also has interests in a number of exploration permits in the Bowen, Galilee and Surat basins.

PPB Advisory is currently undertaking a review of Cockatoo and is working with all stakeholders to assess the current position of the company and identify opportunities to restructure the business for the future.

PPB Advisory partner Grant Sparks said Cockatoo will continue to operate on a business-as-usual basis while they undertake a review of the company.

Topics:  administration, baralaba, cockatoo coal, mining




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