The receiver's first report on failed Mosgiel diatomite
manufacturing company Featherston Resources has been filed,
but sheds little light on the company's immediate future.
Aside from receivership, shareholder groups on both sides of
the Tasman have been attempting to go to court to have a
$A4.8 million ($NZ5.2 million) bail-out offer by Plaman Group
set aside. The offer has been formally accepted by creditors
but leaves next to nothing available for the shareholders.
At the time of receivership, there were 217 shareholders in
Featherston, holding a total 96.65 million shares, with about
$15 million having been invested in the company over about 16
It launched its $1 million Duke Rd diatomite plant in March
2011, to supply the fertiliser industry, but actual sales
were only a fraction of the millions of dollars of forecast
Neither the Sydney-based law firm representing some
shareholders nor the Auckland-based solicitors it has
retained have returned calls on the issue of possible
Sydney-based Woodgate and Co, which was appointed the
receiver and manager of Featherston in December, outlined the
book value of some assets but withheld the receiver's
Woodgate and Co said information had been ''omitted'' on the
''realisable value of certain assets'' as it was commercially
sensitive and could prejudice future asset sales.
The first report, lodged this week, noted the receivers had
given an undertaking to the Supreme Court of New South Wales
to ''not encumber or dispose of any assets of the company
[Featherston] or its subsidiaries'', with the undertaking
extended to Monday.
Separately, the Auckland-based administrators of
Featherstone, Rodgers Reidy, have estimated creditors could
be owed up to $A4 million ($NZ4.23 million).
Woodgate and Co said it was ''too early to determine with any
certainty whether [there] are likely to be any funds
available for unsecured creditors''.
Earlier this week, joint administrator Rodgers Reidy
advertised that Featherston creditors should come forward to
lodge a formal claim for debts. Reidy noted the ''deed of
company arrangement'' had been executed, which is the $A4.8
million bail-out offer by Plaman Group.