Cockatoo miner payday
Wednesday 04 May 2016
SEVENTY five former employees of Cockatoo Coal near Baralaba are expected to be paid out their entitlements by the end of this week, despite ongoing delays in the application of a rescue plan for the troubled miner.
In a statement by administrator Stephen Longley from PPB advisory, they said the money will be paid out shortly.
“The deed administrators further note that sufficient funds are now available to make a distribution to the employees of Cockatoo Coal Ltd, that have been made redundant since the appointment of the administrators,” he said.
“This distribution which will pay employees their entitlements in full, will be made on or before the 6th May 2016.”
After going into administration in January, Cockatoo Coal was offered a rescue package - known as a deed of company arrangement (DOCA). Under the DOCA a $100 million loan facility lifeline by shareholder Liberty Metals & Mining Holdings was offered in return for about a third of all shares issued in the company and its subsidiaries.
Seventy-eight million of the $100 million debt facility will go toward paying creditors’ claims, which is particularly good news for terminated employees and small unsecured creditors, (owed up to $25,000) because they are likely to be repaid in full.
However, large unsecured creditors like the remaining partners in the Wiggins Island Coal Export Terminal (WICET) and Aurizon will have to write off millions of dollars of bad debt.
However the approval of that DOCA, which should have already occurred - has been delayed because several of Cockatoo Coal's creditors are yet to release their security over the company, which is a key requirement before the rescue plan can kick into gear.
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