New Wilkie Energy - Case Update

Competing DOCA proposals have been received for Queensland coal miner New Wilkie Energy, which owns the Wilkie Creek mine near Dalby.

Andrew Cummins, Jonathon Keenan, Peter Krejci and Stefan Dopking of BRI Ferrier were appointed voluntary administrators of the company and various subsidiaries in late December of last year. At the first meeting of creditors on 9 January, creditors resolved to replace the administrators and appoint Richard Tucker, David Johnstone and David Osborne as voluntary administrators. On 11 January, Ben Campbell and Chris Hill of FTI Consulting were appointed receivers and managers over all but one of the companies.

The convening period was extended to allow the receivers to conduct a sale process. Ultimately, a DOCA proposal was received from Boom Advisory which relates to New Wilkie Energy only. The proposal contemplates the restructuring of secured debt, a $5.5 million deed fund to cover fees and expenses of the receivership and the administration, and a $1 million creditors’ trust to be distributed to unsecured creditors in two classes depending on the geographical proximity of the creditor’s place of business to the mine. Secured creditors have agreed to the proposal.

On 24 September, the day before the convened second meeting was to be held, the administrators received a competing DOCA proposal from Pacific Resources, which had requested that the meeting be adjourned. The administrators notified creditors that they continued to recommend the Boom Advisory DOCA and would not be adjourning the meeting, given the Pacific Resources DOCA presents a lesser return to unsecured creditors (likely nothing) than the Boom Advisory DOCA (0.006c/$ or 100c/$, depending on their class). In addition, secured creditors and the receivers do not support the Pacific Resources DOCA.

The second meeting was scheduled to be held yesterday.

Read the administrators’ most recent report HERE and the notice to creditors regarding the Pacific Resources DOCA proposal HERE.