Going, going… administrators appointed to Empire Oil and Gas
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Embattled Empire Oil and Gas has finally succumbed to appointing administrators, two weeks after a subsidiary went into voluntary administration after defaulting on a $15 million loan with its biggest shareholder.
Ferrier Hodgson’s team of Peter McCluskey, Martin Jones and Andrew Smith have been appointed as voluntary administrators of the company and subsidiary Empire Services.
McCluskey, Jones and Smith were appointed voluntary administrators of the company’s subsidiary, Empire Oil Company earlier this month after the company defaulted on a $15 million loan with ASX-listed Mineral Resources.
Administrators took control of assets including a Red Gully exploration permit, two production licences, the rights to present and future petroleum extraction and buildings, plant and machinery on the titles.
The news follows a notice to Empire from Mineral Resources demanding immediate repayment of the $15 million loan.
“After careful and urgent consideration of the options available to it, the company determined that it could not develop a course of action that was reasonably likely to lead to a better outcome than the appointment of voluntary administrators,” Empire said.
“The directors of the company and Empire Services very much regret that these circumstances have come to pass.
“They wish the company, its management, employees and stakeholders success in the future as the voluntary administrators consider the options available to the company and Empire Services.”