Calidus Resources: Debt trade and rapid sale to strategic buyer
Calidus Resources, an ASX-listed gold miner, faced severe financial distress following missed production forecasts and escalating costs.
2 min read
Related Services
RestructuringRelated Industries
Energy & Natural ResourcesCalidus Resources, an ASX-listed gold miner, faced severe financial distress following missed production forecasts and escalating costs.
The secured lender sought to recover $125 million in exposure as operations faced shutdown.
KordaMentha was appointed Receivers and Managers to preserve value, maintain continuity where possible, and lead a fast-paced sale and recapitalisation process.
How we helped
Objectives
Phase 1: Protect value through a structured debt sale process to secure a strategic buyer.
Phase 2: Limited operations to generate cash flow and maximise sale value while avoiding costly shutdowns and restarts.
Our approach
- Conducted an urgent review of operations, implementing measures to preserve resources and cash flow.
- Managed a highly targeted marketing campaign with over 100 engaged parties.
- Delivered a dual-track recapitalisation process, balancing the interests of stakeholders and ensuring a smooth transition to new ownership.
Outcomes acheived
The secured lender was repaid near par within 30 days.
The business was successfully sold, resulting in:
- Employees receiving their entitlements or continuing employment.
- Unsecured creditors achieving a better return than liquidation.
- The company becoming privately owned with funding to continue operations and maximise the Warrawoona gold project.
