Condor Blanco Mines Limited

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Condor Blanco Mines Limited is global mining company, formerly listed on the Australian Securities Exchange (ASX).

In a successful shareholder requisition action that culminated on 5 July 2016, activist investor Joshua Farquhar led a group of shareholders to remove and replace Condor Blanco's entire board of directors and key senior management.

Prior to launching the requisition, Farquhar had obtained a Declaration of Unacceptable Circumstances against the company from the Australian Takeovers Panel.[1] The Unacceptable Circumstances brought to light by Farquhar in the Takeovers Panel proceedings had caused ASX to suspend the company from quotation on 6 May 2016.[2] Condor Blanco was never reinstated to quotation.

On 4 July 2016, the day prior to the shareholder meeting held to consider Farquhar's requisition resolutions, with the outcome of that meeting already known due to advance counting of proxy votes, Condor Blanco's former directors had transferred all remaining funds out of the company and placed the company under external administration.[3] [4] [5] [6]

On 30 August 2016, in a ruling that created precedent, Justice Barrett of the Supreme Court of New South Wales ordered that the external administration had been brought about for an improper purpose and was "invalid, void and of no effect".[7] [8] [9] [10] [11] [12] This ruling saw control of Condor Blanco handed to the new shareholder-elected board led by Farquhar, and enabled the conduct of an extensive forensic review of the company's historical transactions and arrangements.[13]

Condor Blanco's previous managing director, who had been removed by Farquhar's requisition, was later convicted of criminal offences and sentenced to a term of imprisonment.[14]

On 27 November 2017, the company announced that it had adopted 'safe harbour status' under section 588GA of the Corporations Act 2001 (Cth), claiming certain protections against insolvent trading, and making Condor Blanco the first Australian public company to apply the new safe harbour legislation that had come into effect on 19 September 2017.[15] [16] [17]

On 24 August 2018, Condor Blanco announced that in light of material contraventions made prior to 5 July 2016 of the Corporations Act, the company's constitution, and the ASX Listing Rules - contraventions which had come to light as a result of the company's lengthy forensic review - there was no realistic prospect of the company ever being accepted by ASX for reinstated to quotation, and that it was therefore futile for the company to continue to maintain its' ASX listing.[18] [19] Condor Blanco was subsequently removed from the ASX Official List on 28 August 2018.

Condor Blanco's market announcements and reports to shareholders indicate that the company's focus will remain on the recovery of damages from various parties via litigation and other means. [20] [21] [22]

References[edit]

  1. Bulman, Alan (30 May 2016). "Declaration of Unacceptable Circumstances". Takeovers Panel. Retrieved 16 September 2018.
  2. Australian Securities Exchange (6 May 2016). "Condor Blanco Mines - Suspension" (PDF). ASX Market Announcements.
  3. Barrett AJA (30 August 2016). "In the matter of Condor Blanco Mines Ltd [2016] NSWSC 1196". NSW Caselaw. Supreme Court of New South Wales. Retrieved 16 September 2018.
  4. Gosnell, Peter (31 August 2016). "Calabretta Victim of the Curse of Condor Blanco". Insolvency News. Retrieved 16 September 2018.
  5. "Administrators take over Condor Blanco". MiningLink. 6 July 2016. Retrieved 16 September 2018.
  6. Alison Robertson; Claire Petersen. "A shopping list for invalidity and impropriety – voluntary administration of listed entities". Lavan. Retrieved 16 September 2018.
  7. Barrett AJA (30 August 2016). "In the matter of Condor Blanco Mines Ltd [2016] NSWSC 1196". NSW Caselaw. Supreme Court of New South Wales. Retrieved 16 September 2018.
  8. Gavin Parsons and Associates (6 October 2016). "Dangerous appointments - why section 436A resolutions should not be passed in Kings Cross Hotels". Retrieved 16 September 2018.
  9. "Invalid appointment of administrators on grounds of improper motives of directors". BRI Ferrier. 9 May 2017. Retrieved 16 September 2018.
  10. "Invalid appointment of administrators on grounds of improper motives of directors". Mondaq. 12 May 2017. Retrieved 16 September 2018.
  11. Gosnell, Peter (31 August 2016). "Calabretta Victim of the Curse of Condor Blanco". Insolvency News. Retrieved 16 September 2018.
  12. Siva, Polat (13 October 2016). "A man walks into a bar…and appoints an administrator – more on validity of administrator appointments". HWL Ebsworth. Retrieved 16 September 2018.
  13. Klan, Anthony (4 February 2017). "Condor Blanco 'incoherent' records show $730k loss near Mosul". The Australian.
  14. Klan, Anthony (16 August 2016). "Condor Blanco's managing director jailed". The Australian.
  15. "Adoption of Safe Harbour Status" (PDF). ASX Market Announcements. ASX. 27 November 2017. Retrieved 16 September 2018.
  16. Katie, Walsh (7 September 2017). "'Safe to fail': Insolvency safe harbours will rescue struggling companies". Australian Financial Review.
  17. Shabnam, Amirbeaggi (2 November 2017). "The latest on insolvency safe harbour reforms". CPA Australia. Retrieved 16 September 2018.
  18. Australian Securities Exchange (24 August 2018). "Circumstances of removal from ASX Official List" (PDF). ASX Market Announcements.
  19. "Condor Blanco alleges fraud by former board". Mining News. 24 July 2018. Retrieved 16 September 2018.
  20. Farquhar, Joshua (24 August 2018). "Circumstances of Removal form ASX Official List" (PDF). ASX. Retrieved 16 September 2018.
  21. Farquhar, Joshua (28 August 2018). "Response to Shareholder Inquiries" (PDF). ASX. Retrieved 16 September 2018.
  22. "Condor Blanco alleges fraud by former board". Mining News. 24 July 2018. Retrieved 16 September 2018.


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