Restructuring firm KordaMentha has taken the keys at ASX-listed sulphate of potash company, Salt Lake Potash.Salt Lake Potash is enduring growing pains at Lake Way. It is understood KordaMentha’s Richard Tucker and Craig Shepard were appointed as joint receivers on Wednesday.The appointment was made by Salt Lake Potash’s lenders, who are owed about $160 million.The lenders include Taurus Funds Management, the Clean Energy Finance Corporation and Commonwealth Bank of Australia.The lenders have security over Salt Lake Potash’s Lake Way project, in Western Australia.
Salt Lake Potash has spent the past few months in talks with its financiers. Its shares last traded in July at 31¢ each, valuing the group at $250 million on a market capitalisation basis. It lost its CEO in August.Salt Lake Potash was poised to be the first of a fleet of new Australian potash producers when construction of its processing plant at Western Australia’s Lake Way was completed in June, but sustainable production was never achieved after disappointing geological and processing results.
The company went to potential equity investors seeking a capital injection, however failed to secure the required funds. Salt Lake Potash’s shareholders include Ellerston Capital and Swiss firm Lombard Odier Asset Management, according to substantial shareholder notices.more to come
SO4 Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
