BNB have pulled the pin on this company.ASX ANNOUNCEMENT22...

BNB have pulled the pin on this company.

ASX ANNOUNCEMENT
22 September 2008
Administrators appointed to 50% owned joint venture company
Natural Fuels Australia Limited (NFAL) a 50/50 Joint Venture between Natural Fuel
Limited and Babcock and Brown Environmental Investments Limited has appointed
Peter Walker and Steven Sherman of Ferrier Hodgson as joint and several voluntary
administrators under Part 5.3A of the Corporations Act 2001. NFAL and its subsidiary
Natural Fuel Darwin Pty LTD (NFD) own and operate the biodiesel production facility in
Darwin.
The directors of NFAL resolved to appoint administrators on Friday 19 September 2008
following the withdrawal of funding support by Babcock and Brown Environmental
Investments Limited, with the effect that the 30 September 2008 repayment date for
NFAL’s secured loan to that shareholder would not be extended.
Administrators have not been appointed to Natural Fuel Limited. The directors
believe that Natural Fuel Limited’s financial position remains sound and that the
appointment of administrators to NFAL and NFD will not adversely affect it.
Following an assessment of the recoverability of Natural Fuel Limited’s secured loan to
NFAL, Natural Fuel Limited raised a provision for impairment of $30.3 million in its 31
December 2007 financial statements. In Natural Fuel Limited’s preliminary final report as
at 30 June 2008, that loan was valued at $13.8 million. Natural Fuel Limited considers it
is likely that a further provision for impairment of its loan to NFAL will now be required
and will determine the appropriate quantum of this as soon as possible.
The directors of Natural Fuel Limited are disappointed with this development. They note,
however, that Natural Fuel Limited will cease providing funding for NFAL, allowing it to
focus on its wholly owned biodiesel production facility in Singapore. This is expected to
have a positive impact on cashflow and earnings