Kagara’s creditors ‘ victims’ in ongoing saga
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.