Sons of Gwalia's administrators yesterday revealed a further blow-out in the liabilities of the crippled WA miner to more than $860 million and warned the next creditors meeting could be delayed for up to nine months.
Insolvency specialist Ferrier Hodgson reported that total liabilities were now estimated at $862 million.
At a meeting on Friday, creditors were told the group's debts might exceed $800 million.
The latest revelation comes as the Australian Securities & Investments Commission finally publicly confirmed it was "making inquiries" into events leading up to Gwalia's shock collapse on August 29 - five weeks after it received its first report on the deteriorating state of its gold reserves.
According to the latest figures by Ferrier Hodgson, Gwalia's hedging and financier debts now stand at $490 million, trade creditors are owed $70 million, employee entitlements are estimated at $7 million while workers compensation and redundancy entitlements stand at $16 million.
On top of that, US noteholders are owed $235 million while rehabilitation bonds and guarantee facilities total $44 million.
Despite the blow-out, the administrators warned the latest figures remained subject to finalisation of a number of accounts, and were likely to change further during the course of their review.
The administrators repeated that there were sufficient assets to meet all employee entitlements in full, including all potential redundancy and compensation obligations.
While its initial recovery strategy was built around the sale of Gwalia's ailing gold division and a recapitalisation of the tantalum business, Ferrier Hodgson said yesterday the sale of the tantalum operations was also now considered a likely option.
Creditors were told last week the group's assets were valued at up to $700 million, with the 500,000 ounces a year gold business valued only at "tens of millions".
Given the complexity of the group and its finances, Ferrier Hodgson said it would seek court permission to delay the second creditors meeting for six to nine months, compared to the 28-day period stipulated by law.
Nonetheless, signs continue to emerge of strong interest in Gwalia's various mining assets.
Perth gold junior International Goldfields said yesterday it had written to Ferrier Hodgson expressing interest in Gwalia's gold operations, particularly the Sons of Gwalia mine at Leonora.
IGL is already trucking bulk samples from its Mt Ida gold project, 110km to the west, to the plant for toll treatment. Its resource now stands at 100,000oz.
WMC Resources has already flagged its interest in the tantalum division, while mineral sands miner Iluka Resources has also been tipped as a prospective bidder.
>>>>>>>>>>>>>>>>>>>>>>
Cheers,
Fig Jam
SGW Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
