A resources producer is struggling to meet its financial obligations and taken the first step towards insolvency.
Cor Cordis partners Jeremy Nipps and Barry Wight have been appointed as voluntary administrators for Adaman Resources.
$100M owed
Adaman was founded in 2017 by chief executives and managing directors from Rivet Mining Services (RMS), SMS Mining and the Mitchell Group.
Since establishment the embattled company is now believed to owe creditors more than $100 million.
Job security unknown
The proponent directly employs about 50 workers, and it is uncertain whether they will be retained, redeployed or made redundant.
RMS, SMS and Mitchell Group already employ a combined 560 staff.
Creditor talks begin
Nipps and Wight will begin holding virtual creditor meetings on Zoom and telephone about the way forward for Adaman.
The first meeting on May 12 is expected to discuss appointing a committee of inspection, and whether Cor Cordis should continue to administrate the proponent.
Subsequent meetings are widely expected to explore ways to reduce operating expenses, especially at Adaman’s existing gold projects including:
- Corinthia, 370km east of Perth
- Kirkalocka, 500km northeast of Perth
- Snake Well, 170km northeast of Geraldton.
Click here to join the first meeting.
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