BANDANNA SUBSIDIARIES FALL INTO ADMINISTRATION
Written on the 19 February 2015
THE fate of Bandanna Energy (ASX: BND) remains under a cloud after 15 subsidiaries of the mining hopeful were placed into administration today.
The move comes four months after Bandanna was placed into voluntary administration as the company failed to reach an agreement with financiers for the controversial $1.2 billion Springsure Creek underground coal mine near Emerald.
Administrators Grant Sparks, Martin Ford and Philip Carter, of PPB Advisory, had originally sought to work with management to explore options to sell the business and assets, or to restructure or recapitalise the group.
In a letter to shareholders in January, the administrators said they were "obtaining valuations of the company's assets with the intention to commence a sale of business process in early 2015".
The Springsure mine obtained federal government approval but had been opposed by local farmers concerned at the loss of prime agricultural land. The mine was to have a 40-year life and employ about 600 workers.
In a brief statement today, the administrators say they have been appointed to oversee the affairs of 15 Bandanna subsidiaries.
A second meeting of creditors is not due until October at the latest following a court application late last year by the administrators to extend the convening period.
Earlier this month directors Terry O'Reilly and Gordon Saul resigned from the Bandanna board.