McAleese’s recapitalisation plan challenged

One of the shareholders of the company argues that the recapitalisation plan was structured with the chief executive’s interests in mind.

Havenfresh Pty Ltd, a shareholder of the struggling Australian mining service company McAleese, has called for a delay on the company’s recapitalisation plan reached last month.

The shareholder has submitted an application to the Australian Government’s Takeovers Panel declaring that the recapitalisation was reached under the condition that unacceptable coercive pressure was applied to existing shareholders.

The application also mentions that the entitlement offer and underwriting arrangements have been structured to deliver control of McAleese in the chief executive and founder Mark Rowsthorn’s interests without shareholder approval.

Moreover, the shareholder warns that that the consortium and Rowsthorn’s interests are related, based on their common goal and agreement in the delisting of McAleese. 

As a result, Havenfresh demands that the senior debt acquisition and entitlement offer not be proceeded until the panel has concluded its proceedings and the plan should be delayed until after the shareholders meeting with approval from the stockholders.

The acquisition of senior debt by the consortium was originally set at the end of June, but the deadline was recently shifted to 19 July.

The consortium was led by Hong Kong debt seller SC Lowy and its investors, BlackRock and Remagen Nominees. It has reached an agreement last month after multiple suspensions in which McAleese will pay $112.3 million in exchange for wiping out most of its existing senior debt of approximately $200 million. 

The SC Lowy consortium will also receive options entitling it to a 35 percent stake while also mandating a delisting of McAleese.

According to a local press report, McAleese’s shares slumped 15 percent from the 2013 IPO price of A$1.50 ($1.50; €1.03).

The transport company moves fuels, as well as commodities such as iron ore and therefore was badly hit by the collapse of its biggest customer, Atlas Iron.