The owner of the Cypress Lakes Resort in the Hunter Valley and the Golden Door health spa business has warned it will be forced into administration or receivership if it cannot proceed with a $6.4 million rights issue.
Listed tourism operators Cypress Lakes Group announced yesterday that its second largest shareholder, Singaporean food and property company Amoy, has objected to the terms of the rights issue and threatened to force its withdrawal.
Amoy is unhappy that the 20-for-1 issue would give Cypress Lakes’ largest shareholder, fellow Singaporean group Lasseters, more than 90% of the company. At this level, Lasseters could move to compulsory acquisition of the rest of the shares in Cypress Lakes. Amoy says this would be a takeover made in “unacceptable circumstances”.
But Cypress Lakes has rejected Amoy’s concerns and says it believes the rights issue “is in the best interest of the company as a whole and all shareholders”.
“If the rights issue is materially delayed or withdrawn, in the absence of an alternative proposal, it is likely that the company will be forced into administration or receivership, in which case there is unlikely to be any surplus for shareholders.”
Lasseters has said it will continue to support the company’s attempts to restructure and pay down debt, but has not made a decision as to whether it will move to compulsory acquisition if it does end up with more than 90% of Cypress Lakes.