13 November 2006
Macquarie Bank today announced it has appointed corporate advisors KordaMentha to assist in conducting a sale process for the intercompany debts of Allstate Explorations NL which the Bank purchased in 2002.
The proceeds of any sale of the intercompany debts will be distributed to the permanent employees of the Beaconsfield Gold mine on Anzac Day 2006, consistent with an announcement made by the Bank in May.
The debts will be advertised for sale by KordaMentha and any bona fide offers will be put by KordaMentha to a meeting of the mine employees for them to consider.
If the mine employees decide a particular offer is acceptable, the Bank would then proceed to effect that sale and distribute the proceeds to the mine employees
Further details of the sale process and KordaMentha’s role will be outlined to the mine employees as soon as practicable.
The Bank reiterates that the current realisable value of the inter-company debts is not known and is dependent on the mine re-opening. If the mine does not re-open, the debts are unlikely to have any value. If the mine re-opens the value of these debts will be dependent on the performance of the mine.
The Bank had originally announced its intention to give the intercompany debts of Allstate Explorations NL to a trust for the benefit of the mine employees. This, however, did not prove possible. The Bank approached a number of trustees about taking on the trustee role, but none agreed to do so. The role was unusual due to the nature of the proposed trust and its assets. This was further complicated by action in the Federal Court initiated by a current Beaconsfield Gold shareholder. The Bank reached the conclusion that a suitable trustee was unlikely to be secured in a workable timeframe, if ever, and then sought the services of KordaMentha to assist conduct of the sale process.
For more information please contact:
Macquarie Bank Limited
Tel: (612) 8232 6016
Mobile: (614) 1623 7332