Creditors approve proposal to save Boulder Steel project
THE Boulder Steel project planned for Gladstone took a major step forward on Tuesday when creditors agreed to a new proposal.
Otsana Capital, working closely in conjunction with Paul Sundstrom, were successful proponents of the Deed of Company Arrangement (DOCA) proposal for Boulder Steel Ltd (Administrator Appointed) (Boulder Steel), owner of the Gladstone Steel Project at an adjourned second meeting of creditors on Tuesday morning.
The existing shareholders of Boulder Steel will now be required to approve resolutions at a shareholders meeting, estimated to be held in the next three months.
Mr Sundstrom said this should not be a significant hurdle.
He said he was very comfortable working with the Otsana people and was quietly confident "that together we will get the job done and deliver those 1800 permanent jobs that are at stake".
It is expected that significantly more jobs will be created during the construction phase of the project, which Mr Sundstrom said would be a huge benefit to the local community and businesses.
He will be working closely with Otsana over the period leading up to the shareholders meeting to preserve the value of the Gladstone Steel Project and ensure all the necessary steps are taken for Boulder Steel to realise the DOCA.
According to its website, Otsana Capital specialises in IPOs (initial public offerings), corporate restructuring and recapitalisation of ASX-listed companies.
Its team has specialist skills in mergers, acquisitions, capital raisings and listing ASX companies.
Its aim is to "do projects that we think are important and also contributing to noble causes we value".