Uncertain future for Baralaba Coal
THE future of Baralaba Coal is in limbo after the company called in administrators on Wednesday.
Jason Preston, Shaun Fraser and William Harris, all partners of McGrathNicol were appointed administrators
The Administrators are undertaking an urgent assessment of the company.
The objective of the Administrators is to work closely with management, employees, suppliers and customers to quickly stabilise operations and to determine the appropriate strategy for the business.
The appointment of administrators follows Baralaba Coal withdrawal of a share entitlement offer.
The offer was needed to raise $77 million, part of bridge loan agreement with Liberty Metals & Mining, but only managed to generate $39.8 million.
Baralaba Coal was hoping they could secure a waive of this condition during discussions with Liberty Metals & Mining.
The $77 million was needed to restart the Baralaba North mine and meet ongoing working capital requirements.