The restructuring process also included a review of overhead costs and the appointment of Dongyi Hua as managing director.
It comes after VDM confirmed an unnamed “major customer” removed the contractor from a project site due to a dispute over the status of a material contract.
Removal of VDM from the worksite was deemed to be a primary factor in the company’s net loss after tax of $A84.4 million for the year.
“The company is aware that both the removal from one of our client’s sites as well as our year-end result has been disappointing for both our shareholders and the directors of the company,” VDM said today in a statement.
“The company realises that it does need to change and to improve the way we work, how we deliver and how we manage our contracts and more specifically, how we want to differentiate ourselves from our competitors.”
The restructured VDM will specialise in engineering, procurement and construction as well as mining.
The company said it was seeking to acquire a number of mining leases in various countries.
VDM declined for contractual reasons to disclose to MiningNews.net>/i> the company that removed it from the construction site, but confirmed it was continuing to seek resolution to a matter of as-yet unpaid works at the project.
An unspecified value of works performed by the contractor at the disputed site prior to its removal remains unpaid and, as a result, is responsible for the majority of the company’s second-half loss of $24.3 million over the year.
The H2 figure follows a $60.1 million loss for the six months to December.
Also as a result of the dispute, the company terminated an existing share subscription agreement with H&H Holdings Australia and negotiated an alternative capital-raising arrangement.
The new arrangement – unanimously supported by the VDM board but still contingent on shareholder approval – would provide for an initial $6.4 million in funding plus the opportunity to acquire a further $5 million loan.
In the event VDM requires a further loan, it could have access to up to $11.4 million of funding over the next 12 months from H&H.
VDM shares fell more than 47% after its initial announcement concerning the contract dispute in late August.
Shares in the company stood today at 0.9c.
