Liberty Bell Bay Faces Closure Following Failed Sale
Synopsis
The manganese smelter ceased operations after administrators were unable to secure funding or complete a sale of the business.
Key Highlights
- Liberty Bell Bay to close due to a broken sale process.
- An acquisition group comprising Adroit Capital Group and White Oak Global Advisors have dropped from negotiations.
- Since no commercially viable transactions have been completed yet, the smelter will begin a winding-down process immediately.
Administrators EY Parthenon announced that the sale process for GFG Alliance’s Liberty Bell Bay manganese smelter in Tasmania has failed, forcing its closure.
The administrators said on July 15 that a consortium of Adroit Capital Group and White Oak Global Advisors, which entered into exclusive acquisition talks in May, had told them. As per EY Parthenon, problems with the arrangement including scope of work requirements prompted the consortium’s exit.
Operations to Wind Down Immediately
Administrators said they had taken the decision to start winding down the facility immediately because there was no commercially viable transaction, and no funding available to continue operations.
Employees were told that the decision based on the recent redundancy consultation process will be revealed to them by noon on Monday.
It plans to keep on a small number of employees to safely demobilise the plant, manage the sale of remaining assets and maintain compliance with its environmental and regulatory obligations.
Its administrator, Morgan Kelly, said the decision was disappointing for employees, their families and the greater Bell Bay community and that despite efforts to preserve the smelter and jobs there was “no feasible pathway” to completing the transaction or pursuing any other sale
Source: Capital Brief
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