27/10/2009 - 13:29

Natural Fuel to be sold to NRG Capital

27/10/2009 - 13:29

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Collapsed biofuels company Natural Fuel is set to be sold to private WA business NRG Capital for $575,000 after creditors agreed to execute the deed of company arrangement.

Collapsed biofuels company Natural Fuel is set to be sold to private WA business NRG Capital for $575,000 after creditors agreed to execute the deed of company arrangement.

In an update to investors, administrator Ferrier Hodgson said creditors had resolved to execute the DOCA on terms proposed by NRG, the operating company of Parkerville-based Intercorp Pty Ltd.

Intercorp Pty Ltd was responsible for the listing of Neptune Marine Services, Consolidated Tin Mines and underwrote the capital raising to take a controlling interest in Oroya Mining.

Natural Fuel, which operated a biodiesel plant in Singapore, appointed Ferrier Hodgson as administrator in April this year after it reported an interim loss of $47.6 million.

The collapse followed the appointment of administrators to subsidiary Natural Fuel Australia , which operated a biodiesel plant in Darwin, following commissioning problems and the withdrawal of funding from joint venture partner Babcock and Brown Environmental Investments.

Under the offer, NRG has proposed to pay an upfront $575,000 for the Natural Fuel shell, Natural Fuel's shareholding in Natural Fuel Australia and its assets, and the shareholding in US subsidiary NFE and its assets.

The offer is conditional on creditor approval and confirmation from the Australian Securities Exchange that it will reinstate trading of Natural Fuel shares.

The offer is also conditional on shareholder approval of a $1.4 million capital raising through a one-for-two rights issue.

Unsecured creditors are likely to receive 0.2 cents in the dollar in respect of their debts.

Shares in Natural Fuel last traded at 3.9c.

 

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