Peaceful resolution at Pluton
Peace has broken out at Pluton Resources, with warring investors and creditors of the iron ore miner reaching a settlement over the appointment of rival receivers at the struggling company.
Pluton said yesterday its major shareholder and senior secured creditor, General Nice Recursos, had reached agreement with China's Rizhao Port Group Logistics over debts owed by Pluton at its Cockatoo Island iron ore mine.
Rizhao is understood to have been owed up to $32 million by Pluton under pre-paid ore contracts. It forged an alliance with Pluton's partner at Cockatoo Island, Wise Energy Group, to appoint FTI Consulting as receivers and managers at Pluton last month, sparking a confrontation with the company's management and the counter-appointment by GNR of KordaMentha only days later.
With the dispute over control of the company due to hit the courts next week, Pluton said yesterday the two parties had reached a settlement, with GNR to guarantee repayment of Pluton's debt to Rizhao on a revised payment schedule.
The deal also releases Pluton from further deliveries to Rizhao under its sales contract. It is understood Rizhao also took a significant discount on the debt it is still owed.
Wise Energy was also put into receivership last month by GNR over claims it failed to pay its half of Cockatoo Island's operating costs. There was no mention of Wise Energy yesterday in the settlement agreement.
Pluton said yesterday it was still pursuing Singapore-based Silver Fir, a company associated with Pluton director Sal Catalano, for payment for a shipment of ore delivered to China last month.
The company said it had reached agreement with mining contractor Watpac, a major unsecured creditor of Pluton, to load a new shipment of ore this week. GNR had agreed to pre-pay Watpac for its work on the shipment, Pluton said.
