Hamilton Locke recently advised Hayden White and Daniel Woodhouse of FTI Consulting in their capacities as voluntary administrators and subsequently deed administrators of Calidus Resources Limited and its wholly owned subsidiaries (Calidus Group). The deed administrators were able to successfully restructure the Calidus Group pursuant to six deeds of company arrangements (DOCAs).
The Calidus Group is a gold producer whose parent company, Calidus Resources Limited, was listed on the Australian Stock Exchange at the time of the appointment of the administrators. Hayden White and Daniel Woodhouse were appointed as voluntary administrators of the six entities comprising the Calidus Group on 28 June 2024 by the board of the companies.
Following their appointment on the same date, Macquarie Bank Limited (as senior secured creditor) appointed Richard Tucker and John Bumbak of KordaMentha as joint and several receivers and managers of three of the entities comprising the Calidus Group.
On 30 July 2024, West Coast Lending Pty Ltd (an entity affiliated with the Creasy Group), acquired Macquarie’s secured debt position.
The administrators and receivers conducted a joint sale process in respect of the Calidus Group, seeking buyers of all or some of the assets of the group. Ultimately, DOCA proposals were put forward in respect of each entity in the Calidus Group by entities affiliated with the Creasy Group.
The DOCA proposals were each approved at a second meeting of creditors on 27 September 2024 and subsequently executed on 9 October 2024. The DOCA in respect of Calidus Resources Limited involved a successful application in the Supreme Court of Western Australia pursuant to section 444GA of the Corporations Act 2001 (Cth) under which orders were granted permitting the transfer of all of the shares of the company to a nominee of the DOCA proponent.
Pursuant to the DOCAs, creditors received a better return than a liquidation; the majority of the companies’ employees retained their jobs; the companies will continue trading; and relationships with trade suppliers will be maintained.
Control of the companies is now with the broader Creasy Group and steps will shortly be taken to recommence operations at the Warrawoona Gold Project, which was placed into care and maintenance by the receivers on 5 July 2024.
“We are very pleased to have advised FTI Consulting on this complex restructure,” said Nicholas Edwards, Head of Restructuring and Insolvency at Hamilton Locke. “The successful court application sees a new owner take control of the business and a better return to all creditors than a liquidation.”
The Hamilton Locke team that advised FTI Consulting was led by Head of Restructuring and Insolvency, Nicholas Edwards, with support from Special Counsel Katherine McMenamin, lawyer Nimrod Amanuel, and paralegal Ali Edgar.
The associated Court applications were led by Litigation Partner Chris Hood, Special Counsel Clara Hagan, and lawyer Lachlan Chapman. The team was also supported by Mining and Resources partner Michael Boyce and Special Counsel Stephanie Patterson, as well as Corporate Partners Shaun Hardcastle and Jeremy Newman.
The team also worked closely with Joseph Abberton of Lavan (acting for the proponents) and his team to achieve the restructure.
Congratulations to all involved, especially Hayden White, Daniel Woodhouse, Chris Pattinson and the broader FTI Consulting team.
