Pan Asia Corp. Ltd. takeover target New Emerald Coal Pty. Ltd. was placed into voluntary administration and a receiver was appointed May 21 by a secured creditor, which intends to proceed to a deed of company arrangement, or DOCA.
The secured lender took the action as another creditor had withdrawn its support and was looking to wind down New Emerald.
The company said May 23 that its secured loan of US$1.1 million bearing a 12% interest rate, which was provided as part of the deal, will be a part of the DOCA.
"The board is comfortable that the debt will be recovered or it will acquire the assets it seeks as part of the proposed DOCA," Pan Asia wrote.
Pan Asia agreed in December 2015 to acquire 100% of United Queensland Resources Pty. Ltd. for A$200 million via the issue of 10 billion shares. United Queensland owns the Teresa underground coal mining project in Queensland, Australia, via wholly owned subsidiary New Emerald Coal.
