Result of Creditors Meeting
19 Dezember 2008 - 1:03AM
UK Regulatory
Result of Creditors Meeting
RESULT OF SECOND CREDITORS MEETING
The second meeting of creditors of Monto Minerals Ltd (Company) and
its subsidiary companies: Monto Resources Pty Ltd and Eulogie
Resources Pty Ltd was held at Monto Town Hall, 51 Newton Street,
Monto QLD on 16 December 2008 at 10:00AM. The creditors resolved to
accept the proposed "Deed of Company Arrangement". The Deed will be
executed within 15 business days from 16 December 2008.
At the meeting a number of resolutions were passed giving effect to:
(a) the Company, Monto Resources Pty Ltd and Eulogie Resources Pty
Ltd entering into a Deed of Company Arrangement ("DOCA") with Ian
Hall and David McEvoy of PricewaterhouseCoopers to be appointed Deed
Administrators; and
(b) the offer made by Belmont Park Investments Pty Ltd ("BPI") and
Panorama Ridge Pty Ltd ("Panorama") as secured creditors of the
Company ("Offer").
.
The relevant terms of the Offer are as follows:
* BPI and Panorama will forgive the secured debt in
the sum of $12 million;
* the shares in Monto Resources will be transferred to
BPI and Panorama (on satisfaction of certain conditions precedent);
* BPI and Panorama will replace existing bank
guarantees in the sum of $1.1M with these monies made available to
the unsecured creditors;
* the listed shell of the Company will not form part
of the Offer and any proceeds from any recapitalisation of that
shell will be available to the unsecured creditors;
* the loan between the Company and Monto Resources is
to be forgiven (by way of capitalisation);
* the funds available to unsecured creditors will be
placed in the Company and distributed in accordance with the terms
of the Minerals Deed;
* the unsecured creditors of the Company and Monto
Minerals are to be "pooled" to allow those unsecured creditors to
claim against the funds remaining in Monto Minerals;
* following the execution of any DOCA, the Company
will pay BPI and Panorama the balance of their secured debt (after
allowing for the forgiveness of $12 million).
The DOCA process and timing is as follows:
* following execution of the DOCAs a number of
pre-conditions will have to be met before Completion including:
- the signing of formal sale documents with BPI and Panorama
in relation to the Offer
- the replacement of the Security Deposits
- the capitalisation of the inter-company debt between Monto
Resources and the Company
* the completion of the sale of the shares in Monto
Resources is anticipated to occur by March 2009 (depending on
satisfaction of the pre-conditions)
* Following completion and pursuant to the Monto
Minerals DOCA:
- the claims of creditors will be assessed pursuant to that
DOCA (likely April 2009)
- the Deed Administrators of Monto Minerals will seek to
finalise the recapitalisation of the listed shell (likely March 2009)
- there will be a distribution to employees before other
creditors (likely April 2009)
- there may be an interim distribution following the
assessment of the claims of creditors
* Final distributions are likely to occur by June of
2009.
Subject to receiving an offer on the shell of Monto Minerals Ltd, a
meeting of Company shareholders will be called in the next 6 months
to examine the options of the shareholders including recapitalisation
of the corporate shell.
For further information please contact
Ian Hall, PricewaterhouseCoopers,+61 7 3257 5000
Richard Brown, Ambrian Partners Limited - +44 (0) 20 7634 4700
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