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Forge appoints administrators as bank withdraws support

Forge appoints administrators as bank withdraws support

Photo by Bloomberg

12th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Project house and contract miner Forge has called in administrators after financing major ANZ reportedly withdrew its support for the ASX-listed company.

In January, Forge warned shareholders of an expected loss of between A$20-million and A$25-million for the 2014 financial year, after reporting cost pressures at two of its projects in the Pilbara.

At the time, Forge said that ANZ had been willing to extend additional credit to the company, allowing it to deliver on its project pipeline.

However, the bank has now reassessed its position.

Forge’s share price tumbled nearly 21% on Friday and a further 12% on Monday, with the company trading at a low of A$0.85 a share at the end of business on Monday. A trading halt was called on Tuesday.

Forge said on Wednesday that the company’s directors were working with the administrators and were considering options to restructure the company.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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