As a journalist iNO despises coincidence. As the hint of a link between events emerges the chessboard of possibilities is upended by chance’s malicious hand. No conspiracy. Not even stupidity. Nothing to see and no yarn to propound. Which brings us to recent developments in the administration of Wiluna Mining Corporation Limited (WMCL).
As we reported on October 17, WMCL’s former chairman Milan Jerkovic had commenced proceedings in the Supreme Court of West Australia seeking an inquiry into the conduct of the WMCL administration and orders replacing the incumbent appointees in their capacities as deed administrators and trustees of the WMCL creditors’ trust.
Jerkovic complained that WMCL deed administrators Michael Ryan, Kate Warwick, Ian Francis and Daniel Woodhouse had failed to adequately explain why there had either been been no payments from the participating corporations into the WMCL creditors’ trust as per the terms of the WMCL Deed of Company Arrangement (DoCA) or alternatively if there had, why no cash had been swept from the trust into the accounts of the trust beneficiaries, also as per the DoCA terms.
Jerkovic was in high dudgeon. The FTI foursome were also self-evidently in conflict he raged, being both trustees and administrators of the WMCL group of companies obligated to pay the trust.
In addition to engaging Wotton Kearney Lawyers to prosecute his application under sections 444E, 447A of the Corporations Act 2001 (Cth) (Corporations Act) and section 77 of the Trustees Act 1962 (WA) he obtained consents to act as special purpose administrators (SPAs) from Jeremy Nipps and Daniel Juratowitch of Cor Cordis. Sheridans’ Jennifer Low was tapped to take over as trustee of the creditors trust.
10 days later coincidence came calling.
Lo and behold the FTI foursome revealed on October 27 that $37.2 million had been raised via the issue of unsecured convertible notes to the group’s largest shareholder, a sum sufficient to pay the creditors’ trust beneficiaries 100 cent in the dollar. Huzzah!
Let forth the heralds and jesters, the dervishes and the elephant’s parade. Ray Williams trembles enviously, all is saved and there’s no reason for Milan to persist. Let’s get this deal done.
To that end the deed administrators made application on October 27 in the Supreme Court of West Australia for directions that they will be acting properly and would be justified in causing WMCL to pay to themselves as trustees $37.2 million received from Byrnecut Australia Pty Ltd, Deutsche Balaton Aktiengesellschaft and Sparta Invest AG pursuant to the convertible note deeds so as to discharge the debt owed by the WMCL group of companies.
In addition they want the court’s imprimatur to get new directors appointed, declare the DoCA fully effectuated and themselves retired so they can get out of dodge before Jerkovic’s inquiry proceeding stakes them to the pitiless earth of West Australian justice, at least as it applies to those not born a sandgroper. What a coincidence.
But as it turns Jerkovic may yet have a card to play. One day after the FTI foursome filed their application Jerkovic coincidentally revealed that he’d sold his WMC shares to prospecting legend Mark Creasy for 50 cents apiece and in a letter suggested that if co-shareholders wanted to get independent financial advice they might decide Creasy’s offering a better deal than what they’ll get through the trust.
At this stage the deed administrators are still defending the Jerkovic proceedings and it’s not known if he’ll continue the push. Warwick and her FTI colleagues are certainly pushing to get their application on and resolved in their favour. Like we said. Nothing to see here.
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