Business issues, Corporate turnaround, News, Restructuring & Insolvency
Centennial Mining Ltd – Restructuring update
Centennial Mining Ltd to merge with AuStar Gold Ltd in amended DOCA.
Avior Consulting is pleased to announce that we have reached agreement with the creditors of Centennial Mining Limited (Centennial) and AuStar Gold Limited (AuStar Gold) to amend Centennial’s Deed Of Company Arrangement (DOCA) and merge Centennial with AuStar Gold.
The acquisition will deliver significant regional consolidation, substantially increasing the Centennial’s ore resources while delivering very substantial expected corporate synergies. The completion of the acquisition is subject to several conditions precedent including formal creditor approval, AuStar obtaining any required shareholder approvals under the ASX Listing Rules , fundraising and completion of DOCA formalities.
- We will contribute a further $1m to the DOCA and capital raising (in addition to the funding already contributed by Avior Consulting) and alongside other stakeholders including AuStar Gold and the Gandel group.
- AuStar Gold will issue shares to Centennial shareholders equivalent to 40% of the post-Acquisition issued capital of AuStar Gold.
This agreement is a significant step forward in the restructure of Centennial and once successful, will result in the settlement of all legal proceedings against Centennial.
This transaction is an excellent demonstration of Avior Consulting’s new approach to restructuring that includes funding for an administration trade on, careful stakeholder liaison and technical insolvency expertise to produce a successful restructure. We would like to thank the Deed Administrators (KordaMentha) and our legal advisors (Jones Day) for their excellent work to make this transaction succeed.