Steel plant on hold as Boulder goes into administration | Gladstone Observer:
The site of the proposed Boulder Steel project near Mt Larcom
GLADSTONE'S proposed steel plant has hit financial woes, with voluntary administrators appointed to the $4.billion project.
While local leaders are remaining up-beat about the project's future, the administrator has warned that existing investors may lose everything in the process.
This week Said Jahani and Trevor Pogroske of Grant Thornton Australia were appointed administrators of Boulder Steel Ltd and Gladstone Steel Plant Project Ltd.
Mr Jahani said company directors initiated the administration process, "because they felt the company was in financial difficulty."
"The process is really an opportunity to restructure and to come out the other end if they can be recapitalised," he said.
The company declined to comment on the move, which follows a recent bid to attract investors, through a 2.1 cents per share purchase plan.
Mr Jahani said in the next six weeks, administrators will seek new investors to invest in or take over the project, while existing investors are "frozen".
"Those who have already invested, it's probably not a great story for them - it is possible that current investors will have lost everything."
Gladstone Regional Council mayor Gail Sellers said local investors would be affected. "My understanding is that some people have taken up the share offers, probably more in Gladstone than any other area in Australia," she said.
