Stanilite Asks Nab To Appoint Receiver
Sydney Morning Herald
Wednesday May 22, 1996
Troubled electronics and communications group Stanilite Pacific Ltd yesterday requested its banker, National Australia Bank, to appoint a receiver after the collapse of a key contract with Argentina's biggest cellular phone group.
Successful renegotiation of the $34-million contract secured last year was a prerequisite to bankers continuing to support Stanilite. While Stanilite's directors thought the renegotiation likely as early as Monday, they got a letter from a CTI employee yesterday alleging default on the contract and claiming immediate penalty payments.
After receiving the letter directors held a special meeting where they determined there was a question about the group's continuing solvency and instructed NAB to appoint a receiver.
All directors except for executive chairman Mr Brian Gatfield then quit the board.
Stanilite's shares were fetching 26c ahead of the suspension.
Mr Gatfield took over as executive chairman on April 16 when Stanilite revealed a bottom line loss of $41.72 million for its first half after booking $30.6 million of abnormal losses. As at December 31, Stanilite's total borrowings were $37.8 million, of which $26.9 million were current.
At the time, it explained the extraordinary loss as a combination of "difficulties being experienced with existing international telecommunications contracts" and fewer new contracts.
© 1996 Sydney Morning Herald
