Kingsrose creditors approve proposed DOCA
Monday, June 12 2017 - 06:41 AM WIB
ASX-listed Kingsrose Mining Ltd said its creditors have approved a proposed deed of company arrangement (or DOCA), allowing it to avoid liquidation.
?The Administrators held the second meeting of creditors for the company and Natarang Offshore Pty Ltd (administrators appointed) (collectively the Kingsrose Group) and MM Gold Pty Ltd (administrators appointed) (MM Gold) to end the voluntary administration of the Kingsrose Group by way of approval by the creditors of the Kingsrose Group of a deed of company arrangement (DOCA) proposal,? Kingsrose said in an update statement Monday in relation to the ongoing restructure of the company?s financial affairs, the termination of voluntary administration, entry into deed administration and the process to recommence the trading of the company?s securities on ASX.
Kingsrose explained the objectives of the DOCA are to enable creditors to receive a better return; facilitate the conversion of the convertible loans and the debts owed to secured creditors Michael John Andrews (MJA) and Great Golden Investment Limited (GGIL) to equity in the company following shareholder approval; facilitate the business of the Kingsrose Group continuing as a going concern; enable all employees of the Kingsrose Group to continue employment; and facilitate the adjudication and payment of creditors? claims.
?At the meeting, creditors approved entering into the DOCA against liquidation alternatives. The MM Gold meeting was adjourned to 22 June 2017,? Kingsrose said.
The company said the DOCA has subsequently been executed and the voluntary administrators, Michael Ryan and Ian Francis of FTI Consulting have now been appointed as deed administrators of the Kingsrose Group (Deed Administrators).
The Deed Administrators will now administer the DOCA which will come to an end upon the satisfaction of the following:
1. The lodgment of the financial reports for the half-year ended 31 December 2016 with ASX and ASIC ? this was done on 7 June 2017;
2. Shareholders of the company in general meeting approving the conversion of the convertible loans and the debts of MJA and GGIL to equity;
3. The share issues referred to in 2 above, having been issued; and
4. The Deed Administrators having paid the final distribution of funds to creditors in accordance with the terms of the DOCA.
The Deed Administrators will work with the company, its advisors, ASX and ASIC to seek recommencement of trading of the company?s securities on ASX. A number of regulatory approvals are required and the Deed Administrators will seek to obtain these approvals as soon as possible. The Deed Administrators will provide an update once an indicative timetable for re-quotation is finalized, the Kingsrose statement said.
In February 2017 the company entered into a debt restructure deed with each of its secured lenders to restructure certain loan facilities. MJA and GGIL agreed to convert their debt to equity at $0.04 per share (subject to shareholder approval) as part of a further equity raising.
In addition, the company raised a total of $6.55 million under secured convertible loan facility agreements earlier this year, which is convertible to equity at $0.04 per share, subject to shareholder approval.
The company is in the process of finalizing the notice of meeting which will seek approval for the issue of the shares referred to above. It is anticipated this will be dispatched to shareholders in the near future.
?The holding of the shareholder meeting is an important step towards completing the recapitalization of the company,? the statement ended.
Editing by Reiner Simanjuntak