Cockatoo Coal’s Deed Administrators have reported that this distribution, which will pay employees their entitlements in full will be made on or before 6 May 2016.
The date by which the conditions that must be satisfied before the Deed of Company Arrangement is put in to effect has been extended by agreement between Liberty Metal & Mining Holdings and the Deed Administrators. The extension date is 17 May 2016.
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.
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).
