We are pleased to have advised Canaccord Genuity (Australia) Limited (Canaccord) and Morgans Corporate Limited (Morgans) on the recent successful restructuring of the listed company True North Copper Limited (ASX: TNC) (TNC) and four of its subsidiaries (together the TNC Companies).
Following the appointment of Richard Tucker and Anthony Miskiewicz of KordaMentha as voluntary administrators of the TNC Companies on 21 October 2024, Hamilton Locke advised Canaccord and Morgans as proponents of a DOCA proposal in relation to the TNC Companies. The restructure proposal involved a $50 million conditional placement fully underwritten by Canaccord and Morgans, to restructure the TNC Companies’ balance sheet pursuant to the terms of the DOCA and to fund working capital for the business going forward post-effectuation.
The DOCA proposal was approved by the creditors of each of the TNC Companies on 18 November 2024. Following execution of the DOCA, TNC completed a $50.9 million conditional placement and $2.54 million share purchase plan in short order.
The DOCA was wholly effectuated with respect to all TNC Companies on 31 December 2024 and TNC recommenced trading on the ASX on 13 January 2025. The successful restructure was implemented quickly and efficiently, with the TNC Companies completing the placement and exiting external administration in just over 10 weeks after appointment.
The relatively novel combination of a DOCA and placement was undertaken with the support of all stakeholders (including the senior secured creditor). Not only was the DOCA approved by a clear majority of creditors of each of the TNC Companies, but shareholder approval was also obtained under the ASX listing rules to enable TNC to issue the shares comprising the placement.
Hamilton Locke’s corporate team was led by Partner Shaun Hardcastle and Special Counsel Daniel Owen and was supported by our restructuring and insolvency team led by Partner Nicholas Edwards, with support from Senior Associate Katrina Zivkovic and lawyers Nimrod Amanuel and Chansetha Soth.
The team worked closely with Richard Tucker and the KordaMentha team and King & Wood Mallesons (acting for the administrators) to achieve this restructure.
