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City Beat: Cougar trail

James McCullough •
The Courier-Mail•
October 31, 201312:00AM

KAGARA WIND UP

It is like a mini Storm Financial. THE fate of collapsed North Queensland miner, Kagara Ltd will be decided at a crucial creditors meeting in Cairns today.

The company, which was once valued on the sharemarket at over $1 billion and listed in the ASX 200, will either be placed in liquidation or have a possible sales deadline extended.

Perth-based receiver, FTI Consulting, formerly known as Taylor Wooding, is putting several recommendations to creditors, including liquidation or an extension of a sales deadline until December 15.

FTI administrator Stefan Dopking yesterday said there was a group interested in acquiring the group earlier this year but that deal had fallen through.

"There are however other parties looking at it and one option is extending the deadline to allow further due diligence to be conducted,'' Mr Dopking said.

"We are negotiating with one group. The other option is to call in the liquidators.''

Kagara once ran mines, processing plants and exploration projects in Mt Garnet, Balcooma, Chillagoe, Mungana and Charters Towers and employed 600 people.

The group went into administration in April last year after ANZ bank withdrew its support and kept the bulk of $80 million received as proceeds from Kagara's Western Australian nickel deposit, Lounge Lizard.