Ka­gara’s cred­i­tors ‘ vic­tims’ in on­go­ing saga

Townsville Bulletin - - NEWS -

CRED­I­TORS to the failed Ka­gara min­ing group say they are the for­got­ten vic­tims in a $ 100 mil­lion plun­der of busi­nesses in North Queens­land.

The cred­i­tors were com­ment­ing af­ter the latest play in an on­go­ing saga over the for­mer base met­als min­ing group, which crashed in 2012 with debts of $ 100 mil­lion to more than 800 cred­i­tors, mostly small busi­nesses in the Char­ters Tow­ers and the Ather­ton Table­lands re­gions.

For­mer con­trac­tor John Coleman said he had lost $ 520,000 pro­vid­ing earth­mov­ing ser­vices to Ka­gara and had not seen one cent re­turned de­spite a se­ries of as­set deals in­clud­ing a $ 40 mil­lion sale of Ka­gara’s for­mer Mount Gar­net as­sets.

“If the liq­uida­tors keep go­ing the way they are, there will not be one cent left,” Mr Coleman said. “I don’t think they have any in­cen­tive to sell be­cause they have a bit of a cash cow.”

Pri­vate eq­uity- backed Auc­tus Chilla­goe Pty Ltd has launched a 17c- a share cash of­fer for the Ka­gara group’s last key as­set, Chilla­goe- based Mun­gana Gold­fields Pty Ltd ( pic­tured be­low), valu­ing that com­pany at just over $ 40 mil­lion.

Ka­gara liq­uida­tors FTI Con­sult­ing hold a 72 per cent in­ter­est in Mun­gana Gold­fields and have re­jected the of­fer as not rep­re­sent­ing fair value.

Another cred­i­tor, who did not want to be iden­ti­fied, said the whole sorry saga should be in­ves­ti­gated by author­i­ties.

The cred­i­tor said a $ 100 mil­lion dam­age from a cy­clone or sim­i­lar loss from the cat­tle in­dus­try would have prompted com­mu­nity and gov­ern­ment ac­tion.

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