Blackgold Natural Resources Limited Issues Critical Judicial Management Update

Key Points from the Latest Announcement

• Revised Investment Proposal: PT Rajawali Artha Global (RAG) has submitted a materially revised investment proposal to Blackgold Natural Resources Limited, which is currently under judicial management. RAG now proposes to invest S\$1,600,000, significantly reduced from the previously proposed S\$5,000,000.
• Equity Restructuring: In exchange for the S\$1,600,000 investment, RAG seeks an 85% equity interest in the restructured company. This represents a substantial shift in ownership and control, with existing shareholders facing significant dilution.
• Payout to Unsecured Creditors: The revised proposal earmarks S\$1,600,000 for payments to unsecured creditors, who have total estimated claims of approximately S\$4,200,000. This results in a proposed payout of roughly 38 cents on the dollar, or 38% of admitted claims.
• Fresh Creditors’ Meeting Required: Due to the material changes from the previous proposal (discussed during the creditors’ meeting on 14 October 2024), a new meeting will be convened to allow creditors to consider and vote on the revised proposal.
• Change in Investor: Engagement with RAG comes after Shu Jian Tian Yu Development Co Pte Ltd (SJT) confirmed it would no longer proceed with its own investment proposal.
• Ongoing Judicial Manager Oversight: The announcement and restructuring process are being overseen by Judicial Manager Farooq Ahmad Mann, who will make further updates as material developments arise.

Important Considerations for Shareholders and Investors

• Potential Share Price Impact: The drastic reduction in proposed investment and the substantial dilution of existing shareholders’ equity (with RAG seeking an 85% stake) are likely to have significant implications for the company’s valuation and share price. This is a highly price-sensitive development.
• Creditor Recovery Rate: The payout to unsecured creditors is now only 38% of admitted claims, which may impact sentiment among both creditors and investors regarding the company’s financial health and future prospects.
• Uncertainty and Risk: As the proposal has changed materially, and with a new creditors’ meeting to be convened, there remains considerable uncertainty regarding the outcome. Investors should closely monitor future announcements and the results of the creditors’ vote.
• Regulatory Review: The announcement has been reviewed by the company’s sponsor, Evolve Capital Advisory Private Limited, but not examined or approved by the Singapore Exchange. The Exchange assumes no responsibility for its contents.
• Advice to Investors: Blackgold Natural Resources Limited advises shareholders and potential investors to consult their stockbrokers, solicitors, or professional advisers if uncertain about what action to take.

Detailed Timeline and Next Steps

Recent Developments: The company had previously been in discussions with SJT, which has now withdrawn its proposal. RAG stepped in as a potential investor, but with significantly revised terms. All stakeholders are awaiting the outcome of the upcoming creditors’ meeting, which will determine whether the revised proposal is accepted and, consequently, the company’s future structure and financial position.

Further Announcements: The Judicial Manager will continue to provide updates on material developments. Investors are strongly urged to stay informed and review all company announcements as they are released.

Contact Information

For further inquiries, investors may contact Mr Jerry Chua at Evolve Capital Advisory Private Limited, Tel: (65) 6241 6626, located at 160 Robinson Road, #20-01/02, SBF Center, Singapore 068914.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisers before making any investment decisions. The Singapore Exchange has not examined or approved the contents of this update and assumes no responsibility for its accuracy or completeness.

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