06/12/2007 - 15:38

Chemeq creditors facing $40m shortfall

06/12/2007 - 15:38

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Creditors of failed biotechnology company Chemeq Ltd are facing losses approaching $40 million after its receivers failed to sell its land and buildings in Rockingham, which are its main asset.

Chemeq creditors facing $40m shortfall

Creditors of failed biotechnology company Chemeq Ltd are facing losses approaching $40 million after its receivers failed to sell its land and buildings in Rockingham, which are its main asset.

A report released today by the company's administrators, Brian McMaster and David Winterbottom of KordaMentha, estimated that Chemeq's total assets were worth $25.9 million, based on information supplied by the company's former directors.

Secured creditors were owed $61.1 million, employees were owed $1.3 million and other claims totalled $1.6 million.

On the basis of these numbers, there would be a deficiency of $37.4 million.

However, the administrator said the receivers, Ferrier Hodgson, did not accept some of the valuations provided by the directors, which in most cases were the written down values in the company's books.

The main asset was Chemeq's land and buildings, including its special-purpose manufacturing facility at Rockingham, whch was valued at $13.2 million.

The receivers appointed Jones Lang LaSalle to value the property and CB Richard Ellis to market the property for sale in July 2007.

The receivers advised that offers received to date were below the valuation as interested parties had not assigned any material value to specialised aspects of the facility.

The receivers also disputed the $2.8 million valuation attributed to the company's intellectual property, which comprise its once-vaunted polymeric antimicrobial, which was designed to replace antibiotics in pig and chicken farming operations.

 

 

 

 

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