Bounty Mining Limited Acquisition of the Cook Colliery coal mine by Bounty Mining
McCullough Robertson’s Resources team has assisted long-standing client Bounty Mining Limited close its acquisition of the Cook Colliery coal mine.
The sale of the mine attracted significant attention as it arose due to the liquidation of the previous seller, CC Pty Limited, when the mine flooded in 2017 leaving its secured creditor $200 million out of pocket.
What initially began as structuring and insolvency advice quickly grew into two significant transactions as Bounty was able to achieve status as the liquidator’s preferred bidder as well as strike a second transaction with a nearby mine owner and lessor of some of the Cook mine leases to acquire related assets and rights.
The transaction involved complex insolvency issues with the secured creditor refusing to accept sale of the mine assets and resulted in the need for the liquidator to seek court orders to complete the transaction agreed with Bounty.
It is a great step forward for Bounty and also for the Queensland mining and resources industry, which will see the Cook mine recommence activities and continued employment for its workers.
The deal is a true example of team work involving expert advice at critical times from our corporate and commercial, insolvency, employment relations and safety and planning and environment specialists.