Administration: Wave power player Carnegie gets a $5m lifesaver

Carnegie Clean Energy (ASX:CCE) may live to fight another day after creditors agreed to a restructuring plan.

The plan is to raise $5m, which administrators KordaMentha Restructuring think will be enough to provide for a recapitalisation of the company, a restructure of its balance sheet and a relisting over the next three to four months.

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Major shareholders and directors who advanced cash to keep the company going before and after administration will swap debt for equity, with some debt being restructured and carried over to the relisted company.

Unsecured creditors can expect a return of up to 10c in the dollar, according to the administrators.

After 20 years of trying to make wave power work on the ASX, Carnegie called in the administrators.

Carnegie’s options were limited after the West Australian government in mid-March pulled the plug on a $16m funding deal signed in 2017.

Who else has had to call in the administrators?

Mineral sands producer MZI Resources (ASX:MZI) has seen two of its directors step down after yesterday announcing it had called in the administrators.

Ronald Beevor and Yuzi Zhou have relinquished their seats as non-executive directors. McGrathNicol Restructuring have been voluntarily appointed as administrators. They plan to continue operating MZI on a “business as usual” basis while options for the sale and/or recapitalisation of the business are explored.

MZI’s troubles escalated last year when its push to increase mineral sands output from its Western Australian operations caused a few headaches.

Disruptions and challenges during the commissioning process delayed targeted performance levels by about two months. This meant MZI had to try and negotiate a restructuring of its debt obligations and secure additional funding. It was able to secure an extra $US1.5m from major creditor Resource Capital Fund VI, but at the same time decided to put its Keysbrook mine on the market.