A "You may be able to claim a capital loss on worthless shares before a company is dissolved. You can do this if a liquidator or administrator declares in writing that you will not receive any further distribution from the company."
As shareholders a nil return is expected if restructured maybe 5% of your holdings retained.
Korda Mentha now managing the asset sale process KPMG manage the administration process. Has been difficult to get any information as a shareholder as you are at the bottom of the food chain.
The company went into voluntary administration with 1.5m in the bank and and number of new assets - 2 x separators and more. The company raised 10 million and never went back on the boards (how is that possible?)
In their wisdom KM bought in 2 x ore separator's to try to recover product - being a fines material and being very wet this was a waste of money. Why not try to get the separators working and get back into production? Ahhh there was a Sulphur issue - this was new and not disclosed earlier.
Ore stockpiles but no capacity to store at the port - also not disclosed.
This has been a cluster and a misrepresentation by the directors and management all along. Leaving money and the best set of books for the administrators is a weak out for the directors who should have worked onsite to get things operating and getting working capital, not leaving an underfunded operation.
So much has happened in this company that should be investigated and full disclosure made by the administrators to fully understand how this debacle occurred. Shareholders will get nothing but I do expect to get full disclosure on the happening in the company as a rosy picture was painted where reality should have been made known.
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