Abra Mine's Deteriorating Liquidity and Voluntary Administration Proceedings
First written in FY2024. 2 of 3 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025MitigatedAnnual report
「As the company has performed the relevant guarantee of debt obligations, there is no outstanding guarantee balance.」
The company made a payment under the guarantee of Abra's debt obligations, reducing the guarantee balance on the consolidated balance sheet to zero. Together with the removal of Abra shares from the scope of the equity method, this reduced the company's direct exposure to the risk. - FY2025-H1MitigatedAnnual report
「The second payment was to be made by 29 November 2024. Until that payment was made, Taurus and Abra would not make any claims against the company under the parent company completion guarantee. Upon completion of the above payment, the company's obligations under the parent company completion guarantee to Taurus, including cost overruns, would be fully extinguished, and Taurus would not make any claims against the company.」
An agreement was reached under which the parent company completion guarantee relating to Abra would be extinguished upon two payments, and the first payment of ¥2,416 million was made. Although certain potential liabilities, including the cost-overrun guarantee, remain, specific risk-reduction measures have been put in place. - FY2024MaterialisedAnnual report
「Abra's board of directors resolved to commence voluntary administration proceedings under the Australian Corporations Act.」
Abra entered voluntary administration after failing to meet its operating plan, experiencing deteriorating liquidity, and facing difficulties in discussions on additional support. A ¥9.7 billion loss on equity-method investments, including an impairment loss on Abra shares, and losses of ¥8,778 million on loans, advances and other items were recorded.