Oct 21, 2019

Potential buyers shortlisted after CuDeco collapse

Potential buyers shortlisted after CuDeco collapse

The receivers for failed Cloncurry copper miner CuDeco say they have sought and gained expressions of interest from a range of local and international parties.

The process undertaken by financial advisor Argonaut Securities was seeking offers to recapitalise and/or acquire the company or to acquire its assets.

In a market update, FTI Consulting said the receivers and Argonaut had shortlisted a number of parties to conduct further due diligence.

The interested parties would be expected to submit a final binding offer by November 15, FTI said.

Operations at CuDeco’s Rocklands copper mine at Cloncurry have been suspended since August 31 last year.

Lenders China Tonghai International Financial Limited (CTIFL) appointed three members of FTI Consulting as receivers and managers of CuDeco in July this year following a strategic review of funding and restructuring options.

The company entered into voluntary administration a week later, with Matthew Joiner and Jeremy Nipps of Cor Cordis appointed as administrators.

KAP Federal Member for Kennedy Bob Katter last week slammed the Chinese-owned miner for failing to pay their employees’ entitlements after standing down its workforce earlier this year.”

“We started with a small group of employees coming to my office requesting help and that number is growing exponentially with more and more contacting us every week,” he said.

“These are hardworking people living in the small town of Cloncurry who are now struggling to feed their families.

“You can’t sack a workforce of that size and expect them to find work easily in a small town, the jobs just don’t exist and some have had to change industries, leave town or travel to Mount Isa for work.”

Mr Katter said Federal Government assistance under the Fair Entitlements Guarantee could not come into play until the company went into liquidation or bankruptcy.

Mr Katter said his office had received communication from the administrators which advised that they, at present, were unable to pay the employees, advising them to attend a meeting in February with all other creditors.