Plantations International Information

On Jan. 21, biodiesel producer Australian Renewable Fuels Ltd. revealed that its board of supervisors has actually unfortunately placed the firm right into a state of volunteer administration, which the firm describes as “a type of insolvency arrangement that develops a possibility for flexible as well as cutting-edge strategies to bring about a better end result for stakeholders than could otherwise happen in liquidation.”

The business points out quickly decreasing oil costs, the breakdown in correlation between petroleum and also feedstock rates, and also “proceeded as well as destabilizing uncertainty of the

[Australian] federal government’s policy in respect to biodiesel over current years …” as factors for the decision.

“The board and administration have carefully examined options to protect business and also provide a basis for a reactivate of procedures if or when acceptable gross margins return,” ARFuels explained. “These consisted of seeking cost boost from our consumers, going after much more lucrative export sales possibilities to the United States together with idling the production centers and minimizing all business tasks. Those campaigns would have required the support of the major lending institutions to permit the business to retain funds as well as pay all superior trade lenders and also worker entitlements. To that end, a number of propositions were sent to the firm’s debt carriers. Regrettably, the financial obligation service providers have considered their position and also have actually rejected these propositions leaving the board without alternative yet to designate a volunteer supervisor.”

David McEvoy and also Nick Martin of PPB Advisory have actually been selected to function as voluntary administrators. ARFuels states its board and also senior administration intend to deal with PPB Advisory to explore all options to take full advantage of the worth for every one of the firm’s stakeholders.

Biodiesel Plantations International