Shareholders own no part of this company anymore, its owned by the majority debt holder.
If your still holding, maybe in a year or so the shell company which is soon to be QIN maybe used for a new acquisition. That is if it doesn't get fully wound up and deregisted.
The world’s biggest investment house, Blackrock, has tightened its grip on collapsed sandalwood producer Quintis after creditors yesterday gave the green light to a plan to privatise the company.
The vote in favour of a deed of company arrangement to recapitalise Quintis through a cash injection of up to $175 million will save jobs but is the last nail in the coffin for 7500 shareholders who hoped to salvage something from their investments.
The endorsement at the creditors’ meeting was the last hurdle to be cleared by Blackrock and other bondholders owed $US250 million. The bondholders have, for months, been circling their wagons in an attempt to acquire control of Quintis and its subsidiaries.
Receivers from McGrathNicol said the DOCA was “another important step in seeing the business emerge as a private company in a very strong financial position and well-placed to continue its strategy as the world’s leading marketer, producer and seller of sandalwood timber, oil and products”.
Receivers are aiming to have the recapitalisation process completed by late August.
DOCA preserves growers’ investments in Quintis’ managed investment schemes and the jobs of 221 staff but extinguishes the hopes of shareholders who had hoped to rescue something from their shares by participating in the recapitalisation.
The Quintis business will be shunted into a new company, leaving shareholders in the suspended ASX vehicle reliant on a sale of the corporate shell or class actions to recover any value.
QIN Price at posting:
29.5¢ Sentiment: Sell Disclosure: Held
