09/07/2015 - 15:44

Receivers appointed to FairStar assets

09/07/2015 - 15:44

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Troubled mining group FairStar Resources has been put in the hands of receivers and managers with the appointment of PPB Advisory’s Simon Theobald and Melissa Humann.

Receivers appointed to FairStar assets
FairStar managing director Kevin Robertson.

Troubled mining group FairStar Resources has been put in the hands of receivers and managers with the appointment of PPB Advisory’s Simon Theobald and Melissa Humann.

In a confusing statement issued by the company, it said the pair were appointed over a specific property in relation to deed under which a broad range of items were listed as security including cash, receivables, rebates, investments and intellectual property including geological databases.

However, Australian Securities and Investments Commission records showed that the Mr Theobald and Ms Humann were appointed as receiver managers of the Kevin Robertson-led company.

The appointment was the result of action taken by a creditor, The Sheldon Coates Superannuation Fund which, according to the FairStar 2014 annual report, held more than 12.7 million shares on behalf of Sheldon and Harvey Coates in November 7 last year. 

It is unclear what the debt was linked to although the company said there was a “Security Interested dated 2012 over all present and after acquired property registered under the Personal Property Securities Act, registration No. 201401138837.”

In the FairStar 2014 annual report a loan of nearly $2.2 million secured under the PPSA with an interest rate 60 per cent per annum.

Assets pledged as security under the PPSA amounted to $945,045.

This appears to be just one of several complicated arrangements made by FairStar to continue operating.

It was similarly unclear if the creditor appointing the receivers and managers was one with whom the company entered into a deed of settlement and payment in October last year in an arrangement that involved payments of $25,000 per month with a 10 per cent per annum interest accruing.

In the same month last year the company reported that leases associated with its key Steeple Hill Iron Project had been plainted although the company said it had protected its interests.

FairStar has declined to comment, but it follows a statement earlier this week issued by the company, stating that it wished to inform shareholders that discussions for the funding from I-World International Group were continuing.

In May, the ASX had queried FairStar’s cash position, pointing out that it had received no sales income, only had $19,000 in cash at the end of the last quarter, and had negative operating cashflows of $44,000.

It also estimated cash outflows for the next quarter to be about $70,000 for exploration and administration.

FairStar had hoped that once a convertible loan agreement had been signed with I-World, it would be able to draw down on an agreed facility and would no longer have a negative operating cash flow.

In March last year, Business News reported that FairStar had cancelled a $260 million joint venture, which would have provided 80 per cent of the required funding for its Steeple Hill project, with Alliance Super Holdings, an entity associated with Sydney hair regrowth entrepreneur Roland Bleyer, as it was not in the best interests of its shareholders.

It had also entered into a non-exclusive mandate with Creafin & Associates for a $US400 million fixed term loan facility in June last year, but no deal was ever finalised.

FairStar shares have been suspended from trade since September.

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