17/06/2003 - 22:00

Ascent makes career of revivals

17/06/2003 - 22:00

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ASCENT Capital Pty Ltd has developed a specialisation in salvaging the remnants of failed companies and the proposal that will be put to Tuart Resources shareholders is just the latest in a series of similar moves.

Ascent makes career of revivals

ASCENT Capital Pty Ltd has developed a specialisation in salvaging the remnants of failed companies and the proposal that will be put to Tuart Resources shareholders is just the latest in a series of similar moves.

The boutique corporate finance outfit lays claim to the resurrection of SmartWorld as View Resources and a series of other relistings including Avon Resources, Imugene, Synergy Metals and GEO2. It also says it is at various states of development with Integra Medical, Adelaide-based Nautilus Australia and Q-Vis.

Ascent director Gary Steinepreis said that companies that had been in administration provided a clean shell without some of the risks and liabilities that other struggling entities might have.

“You have to look to get a quality project, raise some money and move the company forward,” he said.

Part of that is a new identity, such as the proposal for Tuart to change its name to Extract Resources. Under the proposed deal being offered to Tuart shareholders, the investment group led by Ascent will end up with almost 90 per cent of the company’s shares.

That includes 16.67 per cent each for three Ascent directors Hugh Warner, Gary Steinepreis and his brother David, 18.28 per cent for Ascent itself, 16.67 per cent for new investors and 4.71 per cent for Tuart chairman Martin Bennett and his law firm Bennett & Co, which is a major creditor.

The proposal includes raising up to $1.4 million and, according to correspondence provided to shareholders, provide a value per share of 34 to 38 cents, as opposed to nil at the moment.

Current liabilities equal $1.2 million, which will be reduced to $343,000 under the proposed restructure.

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