Cockatoo goes into administration

COCKATOO Coal and three related companies Baralaba Coal, Wonbindi Coal and Cockatiel Coal have appointed Grant Sparks, Martin Ford and Stephen Longley of PPB Advisory as administrators of the company, effective 16 November 2015.
Cockatoo goes into administration Cockatoo goes into administration Cockatoo goes into administration Cockatoo goes into administration Cockatoo goes into administration

The Baralaba mine.

Lou Caruana

The administrators are working with the group’s management team to fully understand the options available to the group, which may potentially include a restructure or recapitalisation at an appropriate time, the company said.

Last month the ANZ bank had given notice to Cockatoo Coal that an $81 million bank guarantee facility would be terminated on 15 January 2016.

On termination, all amounts outstanding under the guarantee facility would become repayable.

The facility had provided guarantees required to support the mining operations at Cockatoo’s Baralaba coal mine in Queensland.

Under the terms of the notice, the company had to provide ANZ with an update as to arrangements for repayment of the amounts outstanding on 16 November 2015 and 15 December 2015.

The option had remained for the company to put to ANZ an alternative restructuring proposal, Cockatoo said.

“The company is exploring options for the refinancing of the amounts outstanding under the facility and will further update the market with any material developments,” it said.

In May this year Cockatoo said it had made significant redundancies with the casualties including chief financial officer David Smith, chief operating officer David Vink and company secretary Lee O'Dwyer.

The Queensland metallurgical and thermal coal producer said the redundancies were made to reduce overhead costs at the Baralaba mine and at the head office in Brisbane.

“These changes are part of a restructuring of the organisation and are not expected to adversely impact on the management of the company,” Cockatoo said.

“These employees will continue to serve the company during their notice periods. We thank them for their contributions to the company. The company will update the market on the new company secretary appointment when this is made.”