Talks with customer Atlas Iron and Atlas creditors continue
Trading in McAleese Group shares are expected to be frozen for longer as the company battles to find an accommodation between its largest bulk customer, Atlas Iron, and that firm’s creditors.
Such an arrangement would be bound to help greatly in keeping McAleese’s own lenders happy.
The stock exchange (ASX) suspension extension comes six days after Atlas Iron’s own such request as it continues with a review of its finances and operations, along with negotiations with contractors, such as McAleese and Qube, and its mainly US-based creditors.
McAleese had sought its own share suspension after Atlas announced it was mothballing its mines rather than operate them at a loss while the iron ore price was low.
“McAleese Group has held constructive discussions with Atlas and its stakeholders on a range of commercial scenarios with a view to supporting ongoing mining and haulage activities from Atlas’ mines,” the haulage firm states.
“As these discussions remain ongoing, the company advises that its voluntary suspension is expected to remain in place for an additional period of up to five business days while this matter is progressed and the company assesses the operational and financial implications of any agreed outcomes.”
Qube has made no comment since April 13.