Nexus Energy Limited (ASX: NXS) placed in voluntary administration
Independent restructuring and corporate advisory firm McGrathNicol announce today that Partners Matthew Caddy, Tony McGrath and Jason Preston have been appointed joint and several Voluntary Administrators (“Administrators”) to Nexus Energy Limited (“Nexus”).
A meeting of shareholders was convened today to consider a proposed scheme of arrangement under which Seven Group Holdings Limited (SGH) would have acquired, through a wholly owned subsidiary, SGH Energy (No 2) Pty Ltd, all of the issued shares in Nexus (Scheme). The Scheme required the approval of:
* a majority (greater than 50%) in number of shareholders who voted on the Scheme; and
* at least 75% of the votes cast on the resolution to approve the Scheme.
At today’s Scheme meeting, neither of the two tests were satisfied and accordingly the Scheme was not approved.
Following the non-approval of the Scheme and, in the absence of an alternative proposal available to Nexus that provided adequate and immediate access to funding, the Nexus Board determined they had no alternative other than to appoint Administrators to Nexus.
The nine subsidiaries of Nexus (Nexus Subsidiaries) have not been placed into administration. The boards of directors of the Nexus Subsidiaries will be working with the Voluntary Administrators and SGH to put in place funding arrangements to enable the Longtom, Crux and Echuca Shoals projects
to continue with minimal interruption.
The immediate priority of the Administrators is to take control of the assets of Nexus and urgently assess its financial position.
“The Administrators will be working with all key stakeholders, including employees and regulatory agencies to ensure the trading operations continue,” Mr McGrath said.
“Administrators will also be working with the Nexus Board and management to assess recapitalisation,restructuring and sale opportunities,” Mr McGrath said.
A meeting of creditors will be held on Tuesday, 24 June 2014 in Melbourne. Details of this meeting will be posted on the McGrathNicol website www.mcgrathnicol.com by the end of next week.