Good news for Sons of Gwalia shareholders, and brings to a close this sad and sorry story. I was a SOG shareholder who had contacted the CEO, just days before the collapse and was told that all was well. Lying bastard. Shareholders deserved to get their share. END of STORY
Settlement reached over Sons of Gwalia cash
Colin Jacoby Thursday, 24 September 2009
AFTER five years, the legal stoush over Sons of Gwalia has all but ended after creditors of the failed gold miner yesterday voted in favour of a $A125 million settlement.
The settlement, one of the largest in Australian corporate history, was finally reached earlier this month by the miner’s administrator Ferrier Hodgson and auditors Ernst & Young.
“This settlement together with the previous settlement of $53 million, made with the directors and their insurers, will add $178 million to the asset pool which will allow for a significant dividend to be paid by December 2009 and will assist in bringing this long-running administration to a close,” Ferrier Hodgson partner Garry Trevor said at the time.
Yesterday, Sons of Gwalia creditors voted overwhelmingly in support of the settlement negotiated.
Sons of Gwalia slipped into administration in August 2004 with its hedge book some $350 million underwater. It had total liabilities at the time of around $860 million.
Meantime, litigation funder IMF (Australia) anticipates that its clients will receive payment of a further dividend from Ferrier Hodgson of around $55 million by December this year.
IMF also expects to receive revenue of around $18 million from the dividend to be paid by Sons of Gwalia and generate a profit after capitalised overheads of around $17 million.
SGW Price at posting:
0.0¢ Sentiment: None Disclosure: Held
