Corporate: RCR liquidators say there won’t be enough money left for shareholders
RCR Tomlinson’s (ASX:RCR) liquidators don’t think there’s going to be enough cash left after the fire sales to pay all of the company’s creditors, and definitely not enough to pay out shareholders.
“We declare that we have reasonable grounds to believe that there is no likelihood that shareholders of RCR will receive any distribution in respect of the shares they hold in RCR,” liquidators Jamie Harris, Matthew Caddy, Rob Brauer and Jason Preston told the market late on Tuesday.
“Depending on your individual tax circumstances, you may be able to rely on this declaration to claim a capital loss with respect to your shareholding in RCR.”
RCR claimed in its last accounts that it had a more cash and assets than debts and liabilities.
Those accounts, which were the 2018 full year numbers, were reiterated in the AGM presentation at the end of October, less than a month before the company appointed administrators.
Liquidators were appointed on March 26 after the administrators’ initial findings suggested RCR was trading insolvent for a month before calling them in. This means meaning RCR’s board directors could be personally liable for debts incurred.
Administrators are appointed when there is a chance a company can be put back on its feet financially; liquidators are appointed when a company needs to be wound up.
RCR went into voluntary administration in November last year after the weight of cost blowouts at its solar projects became too heavy for the troubled company to carry any longer.
It came two days after a class action was launched by shareholders angry about a “catastrophic decline in their share value”.
The administrators have been selling off assets since then, getting rid of the old Tomlinson boiler business to EGL and the mining and heat treatment technology to Perth-based NRW Holdings.
But they have not been able to make the parts equal more than the sum.
Flinders Mines (ASX:FMS) is no longer going to be delisting, saying it withdrew the application three weeks ago when 52 shareholders banded together to issue a 249D notice — a director removal request. Minority shareholders have been fighting an attempt by a 55 per cent shareholder to effectively take over the company by delisting it.
Middle Island Resources’ (ASX:MDI) takeover offer for Alto Metals (ASX:AME) is now subject to getting 50.1 per cent acceptances, instead of 90 per cent. Middle Island made the $9.4m scrip offer for its Kalgoorlie neighbour at the start of March, but Alto has resisted as 32 per cent of its shareholders have already said they won’t be taking the deal.