Ann: Appointment of Voluntary Administrators, page-26

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D1326

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29/03/19

12:43

Post #: 37927830
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Originally posted by JoeBlow: ↑

The announcement reads:-

"Appointment of Voluntary AdministratorsNotice is hereby given that Richard Tucker, John Bumbak and Leanne Chesser of KordaMentha Restructuring were appointed as voluntary administrators of the Company and its wholly owned subsidiary, Maldon Resources Pty Ltd ACN 090 458 665 (collectively ‘the Companies’) on 21 March 2019, pursuant to Section 436A of the Corporations Act 2001.The administrators are in discussions with potential investors to secure funding to allow the Companies to continue to trade whilst the administrators pursue a recapitalisation of the Companies via a Deed of Company Arrangement (‘DOCA’).A further update in respect of the funding arrangements and potential recapitalisation proposal will be released to the market in due course."

I would say that the withdrawal of the S249 has simplified the appointment and this appointment was likely totally necessary as the current parties were unable to resolve the issues hampering CTL. The Administrator has the power, over rides directors (who cooperate but no longer in charge) and makes unbiased decisions. In this case their emphasis is on the continuance of the business and seeking finance. The administrator has a lot of power, answers to ASIC, this one seems specialised in reviving the dead.

My view, wise move. Likely as it was such a basket case they needed a honcho with big kahoonas to sort it.

From the link below, "The voluntary administrator must also report to ASIC on possible offences by people involved with the company.

The voluntary administrator’s role

After taking control of the company, the voluntary administrator investigates and reports to creditors on the company’s business, property, affairs and financial circumstances, and on the three options available to creditors. These are:
end the voluntary administration and return the company to the directors’ control
approve a deed of company arrangement through which the company will pay all or part of its debts and then be free of those debts
wind up the company and appoint a liquidator."

For details visit:-
https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-shareholders/insolvency-a-guide-for-shareholders/

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I think they specialise in mining and agriculture and so if things do not look right in comparison with other companies in similar situations.....they will spot it and report to ASIC hopefully at a higher level than we are able to do so and with more clout.

This is good for us as if the company does survive the new directors will have a clean slate
CTL Price at posting: 0.9¢ Sentiment: None Disclosure: Held
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Ann: Appointment of Voluntary Administrators, page-26

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