Situation summary
Gold mining company based in Victoria with excessive and unserviceable debt levels preparing to appoint voluntary administrators.
Our role
We worked with the company’s management and the prospective administrators to quickly gain an understanding of the company’s cash flow requirements for a care and maintenance administration and the security position over the company’s asset base.
We negotiated an emergency finance facility with the prospective administrators that was entered into immediately following their appointment. Our facility allowed the administrators to maintain the company’s operations at a sufficient level to enable a restructuring plan to be developed and negotiated with creditors.
The result
The company was successfully restructured through a deed of company arrangement, and our facility was repaid in full upon completion of the restructure.