New twist in Padbury saga
Padbury Mining is expected tell shareholders when it returns from suspension that its $US6.5 billion Oakajee funding offer includes a requirement for it to find 20 per cent of the project's funding from other sources.
The company has been suspended from trading since April 11 after initially announcing equity funding had been "secured" for the Oakajee port and rail project.
Padbury failed twice in the following weeks to meet self-imposed deadlines to reveal details of its backers and the terms of the equity agreement.
It now hopes to return to trading tomorrow after this morning announcing an extension of it suspension. Padbury is believed to have last night answered demands to provide those details to the Australian Securities Exchange and the corporate watchdog.
WestBusiness' revelation that Padbury's funding suitor - companies associated with one-time hair regrowth king Roland Frank Bleyer - had previously been involved in failed financing agreements was followed by an announcement by Padbury that it was seeking information on "their capacity to meet their funding obligations".
Padbury also said it intended to unveil the entire shareholder agreement.
WestBusiness today reveals that a key condition not previously disclosed is a requirement that Padbury find 20 per cent of Oakajee's capital costs.
The shareholder agreement is understood to be a close copy of that signed by Fairstar Resources in its failed deal with Alliance Super Holdings, an associated company of Mr Bleyer.
It is believed Padbury managing director Gary Stokes's visit to Korea last week was aimed at finding an engineering and procurement contractor to back that 20 per cent funding guarantee.
Padbury had previously said its partners would provide the $US6.5 billion funding package in three tranches - $US470 million, $3.45 billion and $2.55 billion.
Mr Bleyer said the funding would be provided by a wholly owned subsidiary of Australian-register Superkite Pty Ltd. He is understood to be the ultimate beneficial shareholder of Superkite. Mr Bleyer told WestBusiness last week that the Padbury agreement was "the best deal in the world".
He said Padbury would be required to find a 20 per cent "demand guarantee" to underpin its share of the project.
"We provide 100 per cent of each phase of funding, and we don't even get the 20 per cent demand guarantee to be able to call on until after each phase," he said.
"Now who gives you your money first, and you only have to provide your 20 per cent after you've already had 100 per cent of the money?"
