From FH - in relation to CMR I recieved this, so are shareholders creditors ?? --
20 February 2009 COMPASS RESOURCES LIMITED ACN 010 536 820 (“CMR”) (Administrators Appointed)(Receivers and Managers Appointed) COMPASS MINING PTY LTD ACN 099 550 259 (“CMPL”) (Administrators Appointed)(Receivers and Managers Appointed) (Collectively “the Companies”) CIRCULAR TO CREDITORS I refer to previous correspondence in relation to the Companies. I advise that on 17 February 2009, Keiran Hutchinson, Paul Campbell–Wilson and Chris Munday, all of Ernst and Young, were appointed Joint and Several Receivers and Managers (“Receivers and Managers”) of the assets and undertakings of the Companies pursuant to the terms of a number of registered charges held over the Companies in favour of HNC (Australia) Resources Pty Ltd (“HNC”). The appointment of Receivers and Managers to the Companies by HNC has given HNC control over the operating companies for the Oxide, Sulphide and Exploration Joint Ventures. While the appointments are a significant change in the way in which the JVs have been handled to date, they are understood to have been done by HNC with a view to providing for the immediate JV capital (plant improvements) and operational costs and so enhancing any potential to move the operations toward a future positive cashflow position. Even since the appointment of the Receiver and Managers, HNC has confirmed its commitment to working with the Administrators towards an outcome for creditors of both CMR and CMPL. We understand HNC considers the best way to achieve this is for HNC to remedy Oxide plant deficiencies and operate the plant with a view to then establishing a positive cashflow from which debts can be paid. Given the current low metal prices, the need to “see the site rectification issues through” (estimated to take 2 months), and the very recent appointment of Receiver and Managers, we consider progressing any proposal with HNC is, realistically, likely to take some weeks. Accordingly, we will be making an Application to the Court for an “extension of the convening period” in order that the Administrators’ Reports may be provided to creditors once we are in possession of better information. We consider it more appropriate that the “decision meeting” (otherwise to be held on or before 6 March 2009) be held at a time (we anticipate late April 2009) when there is sufficient reliable information upon which creditors may determine the future of the Companies. If you have any objections to the Application for an extension of time for convening that meeting, please submit details of same in writing to my office without delay.
CMR Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held