Ann: Gascoyne Resources Update, page-11

https://www.theaustralian.com.au/bu...e/news-story/b3a069c7954f54048ed080923dca6ce1

Activist investor tries to derail Gascoyne Resources move

On wednesday, with gold prices hitting fresh peaks, Gascoyne shareholders overwhelmingly backed a plan floated by administrators FTI Consulting to return Gascoyne to trading. Picture: Hollie Adams

• NICK EVANS
  RESOURCE WRITER
  
• 38 MINUTES AGO AUGUST 6, 2020

Shareholders and creditors in WA gold miner Gascoyne Resources will find out today whether the company’s relaunch on the listed market will be derailed by an activist investor backed by Blackrock.

It comes as the Federal Court hears the first round of arguments in Habrok Mining’s last-ditch bid to stop the process.
On Wednesday, Gascoyne shareholders overwhelmingly backed a plan floated by administrators FTI Consulting to return Gascoyne to trading, as the gold price hit fresh peaks.

This left broker Canaccord Genuity poised to launch an $85m capital raising to pay back lenders and underpin its future operations.

Habrok, backed by Sydney’s Remagen Capital with funds from Blackrock, offered up an alternative deed of company arrangement ahead of the June creditor meeting to approve the FTI plan — alongside another competing proposal, from China Hanking — but failed to win enough support to delay a vote on the FTI-backed refloat.

After buying up $616,000 worth of Gascoyne debt, Habrok launched legal action seeking to the recapitalisation and to liquidate the company’s assets, with a first hearing on the matter due in Melbourne today.
The hearing was set to hear arguments over an injunction sought by Habrok to halt the raising, but it is understood behind the scenes talks last night could see an agreement for Habrok to withdraw its injunction request, and hear the petition for the wind-up of the company in full at a later date.

The action extends Remagen’s run on distressed companies. One of its vehicles is also involved in a bitter takeover fight for control of WA gold explorer Alto Metals, and a another won control over failed trucker McAleese in 2016.
Additional reporting: Nick Evans