Path out of administration
Cockatoo now Cockatiel as creditors accept plan to restart mines at Baralaba
Wednesday 30 August 2017
After a short delay, creditors of Baralaba Coal have this week taken the advice of administrators McGrathNicol and accepted a restructuring plan put forward by major shareholder Liberty Metals and Mining (Liberty).
The complex Deed of Company Arrangement (DOCA) accepted by creditors means unsecured creditors owed roughly $1 million will be paid, and current employees will keep their jobs on the same wages. Liberty will also release any security they have over the existing Baralaba Coal company and its assets.
All shares in the subsidiaries of Baralaba Coal (which own the mine and associated infrastructure) will be sold to a newly created business entity called Cockatiel Coal Pty Ltd which Liberty will control.
Cockatiel will also take ownership of all other assets and assignable contractual rights currently held by Baralaba Coal.
Once stripped of its assets and liabilities the current listed entity Baralaba Coal will be sold off.
Importantly for the Baralaba community, the rescue package guarantees ongoing funding to Cockatiel Coal so that the restructured group can finish mine development works.
During this period of administration, the state government granted a mining lease over a critical section of land required for a haul road out of the proposed Baralaba North coal mine. That means all the approvals needed for a restart of the Baralaba North mine have been received.
In theory, it also means the Baralaba South Coal Project (BSCP) is back on the table.
The BSCP was formerly owned by the now-defunct Cockatoo Coal which went into administration in 2015. However, in March this year, Baralaba Coal restarted the approvals process.
The BSCP would be an open cut pit connected to the existing mine infrastructure at the Baralaba North Coal mine by a forty kilometre haul road.
Notable elements of the proposed Baralaba South Coal Project, are the construction of an expanded Coal Handling & Preparation Plant, workshops, fuel and chemical depot, as well as the realignment of approximately 6 kilometres of the Theodore-Baralaba Road.
Baralaba Coal said earlier this year it wants to start building the mine before 2019.