Ann: Creditors Vote to Approve Gascoyne DOCA proposal, page-17

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29/06/20

19:43

Post #: 45523193
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Originally posted by pforpaul: ↑

Hanking's last minute bid threw an extra A$14 million, boosting the offer of upfront payment to creditors to $30 million and - tellingly - removing Foreign Investment Review Board approval as a pre-condition, but it was all for nothing.
Habrok, which was representing global fund BlackRock, was offering to throw $80 million at the issue, avoiding the need for an on-market capital raising, but it too did not get a look-in.
As it had promised to Hanking yesterday, the first order of business was to consider an adjournment to consider the Hanking and Habrok offers, but it was voted down.
Then most creditors, led by NRW Holdings, and lenders Commonwealth Bank and National Australia Bank backed FTI's DOCA proposal.
Other creditors included Orlando Drilling, Wesfarmers, GR Engineering Services, Zenith Energy, Cater Care and MinAnalytical.
MNN understands NRW, as the largest creditor, acted as kingmaker, while around one dozen unsecured creditors owed $3.3 million were open to considering the alternatives, which may have improved their upfront returns.
NRW managed to secure a larger upfront payment from the planned $70-80 million capital raising, and unsecured creditors with debts larger than $10,000 also secured "improvements" to their mix of cash and shares over time.
Smaller unsecured creditors will get 100c in the dollar.
FTI has been running the WA gold miner since June 2, 2019 when it had debts of $120 million. It has invested some $15 million in the business over the year, improving production to above 6000 ounces over the past five months.
Attempts to sell the flagship Dalgaranga operation received two formal bids, but both were rejected as lowball offers.
FTI believed the best outcome for creditors and shareholders was to keep the business running as a going concern as it would generate a significantly better outcome if it avoided care and maintenance.
The consulting firm appears to have been proven right.
"It was noted during the creditor meeting that the competitive tension generated from competing proposals had ultimately generated a better return for unsecured creditors," FTI's Michael Ryan, Kathryn Warwick and Ian Francis noted in a statement.
The administrators are now working with Canaccord Genuity on finalising the recapitalisation and relisting process.

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From the now executed doca
Shareholder ClaimantsTo the extent that shareholders have a claim against GRL, those shareholders will be entitled to the benefit of any insurance policy which responds to such claims

Looks to me like a new company will float not relist. Would love to be corrected.

GCY Price at posting: 3.9¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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