The Federal Court of Australia has appointed a provisional liquidator to ASX-listed Continental Coal after an application from Australia’s market regulator, the Australian Securities and Investments Commission (ASIC).
“All the evidence suggests that the company lacks any proper government or management at this point,” the court said in its decision, which appointed Robert Kirman of McGrathNicol at provisional liquidator.
ASIC’s application alleged the “the company is not being properly managed and has been involved in multiple contraventions of the corporations legislation.” Its investigation into the coal company is ongoing.
A further hearing will take place on 27 May at with ASIC said it would apply to wind up the company and seek the appointment of Kirman as the official liquidator.
Continental Coal has been suspended from trading on the ASX since June last year.
At the end of July last year, it reported ROM coal production of 271 142 t from the Vlakvarkfontein mine in South Africa with another mine, Prenumbra, in care and maintenance. In its 3Q15 quarterly report, the company said both mines had been sold.
Addressing the “uncertainty concerning the proper management of whatever assets the company does have” will be a key concern for the provisional liquidator, as well as addressing issues around regulatory non-compliance and the company’s solvency.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/04052016/liquidator-appointed-to-continental-coal-2016-717/