Nathan Tinkler’s empire has continued to fall, with his largest remaining asset Aston Metals placed in administration due to financial difficulties.
The mineral company’s financial problems have been well known, as in September this year the business was placed in receivership, as secured creditors aggressively pursued unpaid debts.
On November 4, Aston Metals was placed in voluntary administration, with administrators Andrew Sallway and Trevor Pogroske from Grant Thornton appointed.
Sallway confirmed to SmartCompany this morning Tinkler’s Aston Metals was in administration. However, he was unaware of the level of debt of the business or if there would be any job losses.
“We’re working with the secured creditor who appointed the receiver,” Sallway says.
“The receiver is handling the day-to-day operations of the business.”
In September, receivers were appointed to the company by Madison Pacific Trusts, the security trustee acting on behalf of note holders to Aston Metals.
Hong Kong-based company Orchard Capital Partners put a receiver into Tinkler’s base metals business, as it pursued financial debts.
In a statement to SmartCompany at the time, a spokesperson for Tinkler said Orchard Capital had been experiencing its own financial difficulties, although the decision was still “unexpected”.
FTI Consulting was appointed as receivers.
Tinkler started selling off his property assets back in May and earlier this year he avoided legal action with the liquidators of his company Mulsanne Resources by making a $12 million payment in June.
Aston Metals has tenement holdings in the Mount Isa region of north-west Queensland, with five projects at Wolford Creek, Constance Range, Isa North, Isa West and Isa South.
Sallway says Grant Thornton has been appointed to help the company restructure.
When asked about whether or not a sale of the business was likely, Sallway said it was in the hands of the receivers.
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SmartCompany understands there are some interested parties.
FTI consulting was contacted, but there was no further information available.
The creditors’ meeting is set to be held on November 14.