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Adaman Group undergoes restructure
Gilbert + Tobin has advised the voluntary administrators of the Adaman Group on a major mining restructure.
Emma Musgrave
Firm: Gilbert + Tobin (Adaman Group).
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Deal: Barry Wight and Jeremy Nipps of Cor Cordis have been advised in their capacity as voluntary administrators and deed administrators of Adaman Resources and six of its subsidiaries, including the Kirkalocka Gold Mine and the Snake Well Gold Project.
Value: N/A.
Area: Restructuring and insolvency.
Key players: The Gilbert + Tobin team was led by restructuring and insolvency partner Peter Bowden, with assistance from lawyers Becci Cartoon, Megan Lowe, Christopher Ashen and Nikita Goodwill, each of whom played an instrumental role in completing the transaction.
The team was supported by the firm’s disputes and investigations team, led by partner Tim O'Leary with assistance from special counsel Patrick Tydde, lawyer Jamie Ammendolea and graduate Claudia Russo.
Deal significance: Adaman Group is a gold mining business.
Adaman Resources and six of its subsidiaries were placed into voluntary administration on 1 May 2021 “after undergoing issues with ore quality, delays to capital investment projects and the effects of COVID-19”. a statement from Gilbert + Tobin said.
“The matter was complex involving significant and challenging litigation in the Western Australian registry of the Federal Court of Australia which, amongst many other issues, involved a challenge to the validity of the administrators’ appointment,” it said.
“The G+T team was able to steer the administration to seven favourable judgments from the Court in a span of under three months, ultimately securing orders from the Court that the administrators were justified in entering into the deed of company arrangement that was approved by creditors at the second creditors’ meeting, enabling the sale of the Adaman business.”
Commenting further, lead partner Mr Bowden said: “We are very pleased to have assisted Cor Cordis in this complex and delicate administration and thrilled to have been able to facilitate the sale to the proponent to ensure the continuation of these critical mining assets preserving numerous jobs.
“This outcome could not have been achieved without the seamless cross-country efforts of the G+T and Cor Cordis teams.”
