WEAPONS-MAKER DROPS A BOMB

Written on the 27 July 2012

WEAPONS-MAKER DROPS A BOMB

ASX-LISTED Metal Storm (MST) has entered voluntary administration with debts exceeding $11.9 million.

The decision came less than a fortnight after the Darra firearm-maker secured an equivalent $1.43 million engineering-services contract with military-defence contractor Colt Canada.

Adam Shepard and Adam Farnsworth, of Dean-Willcocks Shepard Recovery and Strategy (DWSRS), have been appointed as administrators.

MST had negotiated an inter-conditional umbrella deed with Australian Special Opportunity Fund (ASOF) and Luxinvest Capital Advisors (LCA) that was hoped to eliminate debt and provide $2.95 million in working capital.

However, ASOF cancelled the deed claiming LCA did not fulfil its end of a related subscription agreement.

In the absence of the deed and an alternative suitor, MST expressed doubt over its chances of finding the necessary sources of funding to continue operating. However, the company reveals DWSRS is looking to reach a positive outcome.

“The administrators are now in control of MST and will work with all stakeholders including employees, note holders, other creditors and shareholders in an attempt to restructure the company or sell it as going concern,” says the company in a written statement.

MST shares last traded at 0.1 cents per unit.


Latest News

PROFIT BOOST FORECAST AT VILLA WORLD

VILLA World has forecast profit growth of 5 per cent in the first half of FY17 in an earnings guidance released to th...

WP CURVE SOLD TO GODADDY

NASDAQ-listed tech company GoDaddy has bought Gold Coast's WP Curve for an undisclosed sum.

The subscription-b...

BOARD SHAKE-UP TAKES OUT SURFSTITCH FOUNDER

ONLINE actionwear retailer SurfStitch Group (ASX: SRF) has announced a major board shake-up in a move that effectivel...

ORIGIN TO DIVEST UPSTREAM OIL AND GAS BUSINESS

ORIGIN Energy will spin off its upstream oil and gas business in an as-yet unpriced IPO.

It will allow the Sydney-...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter