Wiluna Mining wins backing from major creditors as court showdown over DOCA exit nears

Wiluna Mining Corporation’s restructuring entered a decisive phase this week, with the company announcing strong creditor and shareholder support for its plan to exit administration, raise new capital, and pursue an ASX relisting, even as a rival proposal backed by AIM Mining Corporation moves toward a contested Court hearing later this month. The update builds on Wiluna’s 9 November disclosure, which detailed its efforts to secure Court directions to terminate its Deed of Company Arrangement (DOCA) and transition control to a newly-appointed board.

In its 23 November update, Wiluna confirmed that its Directions Application—filed by the Deed Administrators (Michael Ryan, Kathryn Warwick, Daniel Woodhouse and Ian Francis of FTI Consulting) to validate the steps required to end the DOCA—has been adjourned to 27 November. AIM Mining and former executive chair Milan Jerkovic have sought leave to oppose the application and advance his own alternative restructuring path, prompting what could become a pivotal hearing for the future of the company.

Wiluna countered that every major financial stakeholder now supports the Administrators’ strategy. The Byrnecut Group, which holds 19.9% of Wiluna’s equity along with $20.9 million in convertible notes and $47 million in secured debt, issued a letter firmly rejecting AIM’s proposal and warning against any delay to the repayment waterfall for creditors. Delphi Group (18.5% equity; $25.5 million in convertible notes) and Franco-Nevada ($12.6 million convertible note) also reaffirmed their backing, praising the restructuring as a success to date and urging the Court to allow the recapitalisation and IPO process to proceed without disruption.

The show of support follows significant financial improvements disclosed earlier in the month. As outlined in the 9 November update, Wiluna has negotiated amendments across its entire suite of convertible notes—held by Byrnecut Australia, Deutsche Balaton, and Franco-Nevada—extending maturities to June 2028 and suspending interest accrual until that date. Byrnecut Offshore also removed a cash sweep mechanism that previously required accelerated loan repayments, freeing up liquidity for working capital and capital expenditure. The company also received additional funding enabling a proposed 100c distribution to pre-administration creditors through the Wiluna Creditors’ Trust, subject to Court approval.

These steps, the Administrators said, position Wiluna to emerge from the DOCA solvent and with a simplified capital structure, ready to progress an IPO once outstanding ASX concerns—including issues linked to ASIC’s ongoing continuous disclosure proceedings and litigation brought by Jerkovic—are resolved. The 2024–25 AGM is set for 28 November, with plans to appoint a new board of directors immediately beforehand, contingent on the Court’s decision.