21/09/2016 - 10:05

Citation enters voluntary administration

21/09/2016 - 10:05

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Citation Resources has appointed KordaMentha as voluntary administrators, while the oil and gas company continues to pursue recovery of funds through a civil action against former director Peter Landau.

Citation enters voluntary administration
KordaMentha has been appointed voluntary administrators of Citation Resources.

Citation Resources has appointed KordaMentha as voluntary administrators, while the oil and gas company continues to pursue recovery of funds through a civil action against former director Peter Landau.

Perth-based Citation said today it had entered voluntary administration, with Richard Tucker and Scott Langdon of KordaMentha appointed to oversee the company’s affairs.

“The board advises that it intends to work with the voluntary administrators on potential remedies and action for the potential recapitalisation of the company,” Citation said.

The company said Federal Court proceedings against Mr Landau, Citation’s former chairman, in relation to accounting for certain monies remained ongoing, but also revealed that it was now pursuing claims against other unnamed former directors for beaches of duty, amongst other undisclosed matters.

“The board takes the view that the appointment of voluntary administrators is appropriate, particularly having regard to the effect on cash reserves flowing from the affairs reported in the independent forensic report,” it said.

Mr Landau resigned from the company in January, with Citation taking him to court in May.

Mr Landau also quit as as a director of Black Mountain Resources in April this year. That company had caught the attention of the Australian Securities and Investments Commission over fund raising activities.

He was also a senior figure at West Perth-based coal mining firm Continental Coal, which went into liquidation in April.

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