mystery banker

Chemeq in $75m refinancing deal with mystery banker
10-April-07 by Andrew Hobbs

Beleagured Rockingham-based animal pharmaceutical products manufacturer Chemeq Ltd has announced a $75 million refinancing proposal from a little-known St Georges Terrace banker International Finance Corporation of Australasia Pty Ltd.

The deal comes despite current legal action which threatens to send the company under.

IFCA, which is chaired by David Petersen, will subscribe for around 310 million shares at 19.35 cents each to raise $60 million under the first stage of the deal.

Mr Petersen is linked to the building of the now defunct Perth Entertainment Centre and the production companies of Michael Edgley during the late 1980s.

The share deal, which would give IFCA a 75 per cent stake in the firm, would be followed by a non-renounceable rights issue to all Chemeq shareholders to raise a further $15 million at the same price.

While the company said it could not guarantee the proposal would be implemented, Chemeq chairman John Hopkins said the board felt signing the subscription agreement and putting the proposal to shareholders was the best option.

"If this equity refinancing package with IFCA is completed, it will herald in a new era for Chemeq," he said.

"We recognise that there is no certainty that we will be able to complete the deal, but we believe that this should not deter us from proceeding and doping our very best to ensure that this transaction is presented as an option for shareholders."

IFCA managing director Cyril D'Silva told WA Business News the company had substantial funding facilities in place for the proposal from the bank he represents in Australia, US-based Alps Resources Bankers Inc.

Alps is linked to another group, Amalgamated Resources Holdings, and shares a president in Amal Rampardaruth. Little is known about Mr Rampardaruth or Amalgamated although there appears to have been some activity in technology investment, including a $US70 million financing agreement two years ago with Seattle-based HQ Sustainable Maritime Industries Inc.

Chemeq is currently awaiting the result of an appeal to a Supreme Court judgement which found it must repay $60 million to bondholders Stark Trading and Harmony Investment Fund after the company allegedly failed to fulfil the conditions of the bonds issue.

Aside from seeking the consent of the Supreme Court to implement the agreement, the deal is also contingent on the appeal not being decided before May 31, and Stark and Harmony agreeing to accept $60 million in return for the redemption of the bonds and satisfaction of their claims.

Chemeq's cash at bank was $8.3 million with creditors, accruals and retentions of $300,000 on March 31, 2006.

http://www.wabusinessnews.com.au/en-story.php?/1/50819/Chemeq-in-75m-refinancing-deal-with-mystery-banker/dba