NEWS ITEM IN TODAY'S AUSTRALIAN:go...

NEWS ITEM IN TODAY'S AUSTRALIAN:

go to:
http://www.theaustralian.news.com.au/business/story/0,28124,25377332-30538,00.html

Ventracor on life support

A PLUCKY group of shareholders has presented a deed of company arrangement to the administrator of Ventracor in a bid to keep the heart pump maker in business and Australian-owned.

The plan, which may be aired at the second creditors meeting next week, is believed to include a new board, new management and a proposal to recapitalise the group, which fell into administration in March after being unable to raise funding to continue its operations.

Shareholders have also set up a "fighting fund" in a bid to raise an estimated $8 million to pay off creditors of the collapsed group. A handful of high net worth individuals have pledged contributions of more than $1 million each on the condition they can conduct due diligence, which would need the co-operation of the administrator, Ferrier Hodgson.

The shareholders have nominated one-time Ventracor boss Michael Spooner rather than existing managing director Peter Crosby to run the company should the deed push succeed. If it does, they'll be hoping Spooner still has the magic touch when it comes to the capital markets, as Ventracor will need to raise upwards of $25 million to get its VentrAssist device on the market in the US.

A website has been set up at www.saveventracor.com.