Ann: Administrators Appointed , page-13

I little more info:

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http://www.tradingmarkets.com/.site/news/Stock%20News/2273413/

Apr 15, 2009 (The West Australian - ABIX via COMTEX)

Ferrier Hodgson has been named administrator of renewable energy group Natural Fuel after it was forced to default on an interest payment. Bank of New York as the trustee will now contact the US bondholders affected. The Natural Fuels Australia offshoot had already entered into administration in September 2008 when partner Babcock & Brown abolished its funding deal.
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Does anyone know if the revised tolling contract has fallen through? If it hasn't, maybe all is not lost. My understanding is they can continue to operate the business whilst in Administration. This would mean that their issue with cash flow for servicing the bond holders and their ongoing issue with getting working capital during the financial crisis can be worked on.

"The Administrators are working with the board and management to look at options for the restructure of the company and its financial position."

In the half yearly report, the board signed off on a NTA of 12cents. This was based on the company as a going concern with the revised tolling contract as a baseline for earnings. This is the most recent information we have from NFL on what the business is worth. It would (or should) include paying the bond holders their interest.

When Power Knight came along, the independant valuation came in at around 11-12 cents based upon the replacement cost of the plant (not the operating business). Since then the financial crisis has meant this valuation would need to be serverly discounted.

Assuming the tolling contract is still valid, hopefully, the bond holders won't just take what they can get through liquidation (which would be little). Hopefully they will be offered an alternate arrangement that preserves their investment and allows NFL to come out of administration and continue its business.

I still believe NFL has a possible good business future ahead. They have the plant ready to go. Governments are mandating biodiesel blends which means crude oil and input costs have less impact on profitability. Perhaps the Administrator could restructure the Darwin plant into the deal.

Unfortunately timing may have got the better of us. It maybe other investors get to benefit from a firesale of our plant and the future upside in biodiesel.

P.S. I notice the Sentiment options don't include sad or disappointed.