Eastern wind-up cancelled after payment

The Supreme Court of Western Australia has reversed its decision to wind-up Eastern Goldfields after it was revealed the relevant debt of $383,000 was paid on the same day the winding-up application was lodged.

Perth-based Eastern said late yesterday that the winding-up process had been terminated and control of the company had returned to the directors.

“The winding up order followed an application by Genalysis Laboratory Services to wind up the company, on account of non-payment of moneys for services rendered in the amount of approximately $383,000,” Eastern said.

“The company was in ongoing discussions with Genalysis in relation to the payment of this amount, which was made on the day on which the court heard Genalysis’ application and made its order.”

HLB Mann Judd was appointed as liquidator to the company on Wednesday, following the court order on Tuesday.

“The application to set aside the winding up order was made on the basis the moneys claimed by Genalysis had been paid, that Eastern Goldfields is solvent, and that creditors and shareholders of the company would be prejudiced if the winding up was not terminated,” Eastern continued.

“Genalysis, together with the company’s primary financier Investec, were supportive of the process to set aside the liquidator, with Investec providing a letter of support as part of the application.”

Eastern said HLB Mann Judd did not oppose the application.

Eastern chairman, Michael Fotios said he was pleased with the outcome of the hearing, which took place this morning.

“This is a good outcome for our employees, investors and contractors as it allows the company to continue with its operations,” he said.

“Our focus has been on building Eastern Goldfields into a premier Australian gold producer through the recommencement of mining at the Davyhurst mining hub.

“With operations now well underway and gold being produced, the board will now focus on addressing administration and management issues in front of the company.”