BREAKING NEWS: Heartbreak as morning email tells staff members Mossman Mill going into liquidation

MOSSMAN MILL

Michael Warren

Editor

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There is increased speculation Mossman Mill is going into liquidation. Picture: Supplied

In a heartbreaking development Newsport understands the Mossman Mill is in the process of or has gone into, liquidation.

Newsport understands a number of staff were informed of the decision by email earlier this morning.

That development comes just days after previous, renewed optimism in the mill’s future following a recent community cabinet meeting in Cairns.

There, on February 28 QLD premier Steven Miles addressed Douglas Shire attendees in which he said the State would offer $12M to help find a buyer for the mill.

At the same time creditors voted to keep the mill operating in the short term at least following genuine interest from Newcastle based company, Clever Power.

A mystery investor or investors also came forward at the time to claim interest in supporting the future viability of the mill.

Just days ago Newsport was told the administrator had given the company and other stakeholders 15 working days to come up with a new company Deed of Agreement (DOA) which would ensure the continued operation of the Mill.

The exact details of the DOA were to be worked out between the Canegrowers, Shareholders, Clever Power, and other stakeholders.

Newsport has reached out to John Goggin of Worrells for comment about today’s developments.

Canegrowers’ spokesperson Matt Watson said “he’d received no official word” about any potential liquidation as of this morning.

More to come.

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Friday, March 22, 12.15pm - EXCLUSIVE

UPDATED: Newsport has exclusively obtained an email sent by administrator John Goggin to relevant stakeholders just moments ago about today’s liquidation developments.

"On 20 November 2023, I was appointed administrator of the Companies," Mr Goggin starts in today’s letter.

“I liaised with numerous interested parties regarding their interest in the group and the mill operations, however only one party submitted a viable expression of interest.

“As announced to the meeting on February 29 2024 this was advanced to a proposal for a Deed of Company Arrangement (“DOCA”) on the eve of the adjourned second meeting of creditors.

“At the reconvened statutory second meeting of creditors on 29 February 2024 (adjourned from 22 December 2023), creditors resolved to accept a proposal from Clever Power Pty Ltd for a DOCA to re-structure and recapitalise the group. The minutes of the meeting are available on our website.

“The provisions of the Corporations Act require the DOCA to be signed by the relevant parties and administrator within 15 business days.”

Mr Goggin goes on to say:

“The Clever Power proposal had a number of requirements to address prior to signing the DOCA, but unfortunately the proponents have not been able to address those requirements within the statutory timeframe,” Mr Goggin explained.

“On 21 March 2024, the proponents of the DOCA advised they were unable to secure the required investment to proceed with their proposal.

“As a result, the proposed DOCA has not been executed within the statutory 15 business day timeframe, and accordingly the Companies transitioned into liquidation on 22 March 2024 pursuant to section 446A of the Corporations Act.”

Mr Goggin then explained what’s next:

“I remain in control of the affairs and assets of the Companies as the appointed liquidator,” he told stakeholders.

“I will now be working towards an orderly winding down of the mill operations and securing the associated assets for sale. I will be working with the staff, governments, growers, and other affected stakeholders over the coming weeks and months in this regard.

“If you believe you may be a creditor of the Companies, you will need to complete a proof of debt form (refer to attachment).

“I will continue to provide updates as the liquidation matters progress.”

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