The Deed Administrators will retain day to day management and control of the deed companies – which include subsidiary companies owned by Cockatoo Coal and assets such as its Baralaba coal mine in Queensland - until the termination date to the exclusion of the directors of the deed companies.

Under the deed, Cockatoo and its subsidiary companies will enter into a new debt facility with Liberty Metal & Mining Holdings, one of Cockatoo Coal’s major shareholders, for $100 million, of which an estimated $78 million will be used to pay creditors’ claims while the balance will be retained to meet the company’s ongoing working capital needs.

Under the deed terminated employees will be paid in full (for amounts paid in priority under Section 556 of the Corporations Act 2001 (Cth) and unsecured creditors owed up to $25,000 will be paid in full or, if insufficient funds, a pro-rata amount of available funds by claim value.

However, the administrators anticipate there will be sufficient funds available to pay unsecured creditors owed up to $25,000 in full.

Unsecured creditors owed more than $25,000 will be paid $25,000 or, if insufficient funds, the available funds will be divided equally among creditors – however, the administrators anticipate there will be sufficient funds available to pay $25,000 to each unsecured creditor owed more than $25,000.

Cockatoo Coal will issue 10 billion new shares comprising 4 billion shares to JS Baralaba Wonbindi, in consideration for procuring that its related company, JFE Steel Corporation keep its current offtake arrangements on foot and vary those arrangements on terms acceptable to Liberty, and 6 billion shares to Liberty at $0.001 per share in cash (which cash will be used to fund a $6.0 million establishment fee payable under the New Debt Facility).