Natural Fuel appoints administrators

Subiaco-headquartered biodiesel producer Natural Fuel has today followed its Australian subsidiary and appointed Ferrier Hodgson as administrators of the company.

"The administrators are working with the board and management to look at options for the restructure of the company and its financial position," Ferrier said in a statement.

The company entered a trading halt last Thursday pending an announcement regarding its financial position. Shares in the company last traded at 3.9 cents.

In its interim report for the six months to the end of December 2008, Natural Fuel reported a net loss of $47.6 million and had $7.4 million in cash and cash equivalents.

Late last year, Natural Fuel Australia, which has a biodiesel facility in Darwin, was placed into administration following ongoing commissioning problems and the withdrawal of funding support from joint venture partner, Babcock and Brown Environmental Investments.

Natural Fuel operated a biodiesel plant in Singapore and earlier this year had signed a 12-month contract with a Europe-based oil and gas commodities trading company to supply up to 50,000 tonnes of biodiesel per month.