Aurora Metals et al - Case Update

David Osborne, Richard Tucker and Tony Miskiewicz of KordaMentha have provided an update on their administration of North Queensland base metals miner Aurora Metals et al. The companies entered administration in June, after racking up debts of approximately $170 million. In their report to creditors in advance of the second meeting that was scheduled for 30 November, the joint administrators recommended that the companies be wound up and placed into liquidation because no DOCA proposal had been received. However, due to recent developments, they have adjourned the meeting. Specifically, Chris Baskerville and Greg Prout of Jirsch Sutherland (the new receivers) advised that they are pursuing an asset sale, and two parties who conducted due diligence approached the administrators requesting an adjournment, which the companies’ two major secured creditors supported. In addition, the administrators were advised that former employees were provided with early access to the FEG scheme prior to liquidation, meaning the adjournment will not delay access to FEG for former employees. The second meeting has been adjourned for a maximum of 45 business days.