Cockatoo Coal faces administrators

Cockatoo Coal has gone into administration, threatening chances for further growth at their Baralaba operation.

The company share price has seen consistent decline since 2011, when it was going for around 50 cents.

A brief recovery in 2013 saw the price back up to $0.73, however collapsing coal prices have seen a complete loss of enthusiasm for the Australian coking coal producer.

Three associated companies, Baralaba Coal, Wondibi Coal and Cockatiel Coal have appointed PPB Advisory as administrators.

A statement from Cockatoo said: “The administrators are working with the Group’s management team to fully understand the options available to the Group, which may potentially include a restructure or recapitalisation of the group at an appropriate time.”

Cockatoo Coal has faced an objection to the environmental authority for the Baralaba Expansion Project, which was due to increase production from 1Mtpa to 3.5Mtpa.

The full hearing for the objection in the Queensland Land Court is due for the 23 November.

In the September quarter Stage 2 Works on the Baralaba Expansion project reached 99 per cent completion of civil works, and 95 per cent completion of the new train load out facility.

The company announced in their September report that received notice from ANZ Bank that their $81million bank guarantee would be terminated as of January 2016, with new arrangements required for outstanding repayments for November and December 2015.

Cockatoo recently sold the Kingaroy exploration tenement to Moreton Resources Group for $300,000.

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