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Cockatoo exits administration

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World Coal,

Cockatoo Coal has left administration after effectuating a deed of company arrangement (DOCA), the company said in an announcement to the Australian Stock Exchange. Day to day management of the company has now reverted back to the company’s directors.

As part of the DOCA, the company has issued an additional 10 billion ordinary shares. Six billion of these will be issued to Boston-based Liberty Metal & Mining Holdings for a cash consideration of AUS$6 million. This cash will be used to fund the establishment fee payable under the new debt facility included in the DOCA.

The remaining four billion new shares will be issued to JS Baralaba Wonbindi to ensure that its related company, JFE Steel Corp., enters into an agreement “documenting certain waivers and amendments in relation to an offtake agreements with the company and its subsidiaries.”

As described by the DOCA, Cockatoo Coal has also entered into a new debt facility, drawing down AUS$100 million. About AUS$73.1 million of this will be used to meet amounts payable to creditors. The remainder will be available to Cockatoo Coal for working capital purposes.

Following the departure of Peter Kane as CEO in mid-May, Brian Wyatt is acting as Interim CEO until a permanent replacement announced.

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