Struggling miner Mirabela Nickel has been placed in the hands of administrators, 15 months after the company completed an innovative restructuring to emerge from its first stint in administration.
It announced late yesterday that its directors have appointed Martin Jones and Darren Weaver of Ferrier Hodgson as joint and several administrators.
“The administrators will seek to progress discussions with financiers to put in place funding arrangements or other restructuring options that will alleviate the liquidity challenges currently facing the company’s operations,” Mirabela said in a statement.
“The continuing significant decline in nickel prices has eroded the financial position of Mirabela necessitating the appointment of administrators to protect the position of all stakeholders.”
The company said normal operations at its Santa Rita nickel mine in Brazil would continue.
This move comes one month after Mirabela suspended trading in its shares, citing the impact of a “precipitous and severe decline in nickel prices”.
The company was previously placed into administration in February last year, with partners from KordaMentha taking charge.
Four months later, after implementing a deed of company arrangement, the company’s directors regained control.
The restructuring included a capital raising and debt-for-equity swap that left pre-existing shareholders with just a small stake in the company.
Mirabela’s most recent accounts for the year to December 2014 showed a gross loss of $US30.7 million on sales of $US137.7 million.
