Malaysian-controlled Australian parent company Plaman Resources was placed in receivership and liquidation by its Sydney-based directors George Manolas and Peter Plakidis last week, because of regulatory delays in buying a farm near Middlemarch, to expand its proposed diatomite mining venture.
It was also unable to complete a corporate reorganisation which was required to secure more capital.
The subsidiary, Plaman Services, ceased trading on June 13 and was described in receivers McGrathNicol's first report as an "entity supporting parent company Plaman Resources".
Plaman Resources has total debt of more than $33.6 million, but appears to have at least $17.8 million cash in trust with a global law firm.
Plaman Resources was lent a bridging loan by investment bank Goldman Sachs, through Goldman's subsidiary NZ Commercial Ventures of $US20million ($NZ30.6million) in May last year, which was to be repaid by May next year.
Plaman owns a non-operational diatomite mine on Moonlight Rd, near Middlemarch, and was intent on expanding the footprint by purchasing the adjacent Foulden Hill farm.
The application to purchase is now "on hold" with the Overseas Investment Office and its status in receivership and liquidation suggests the matter can go no further.
The subsidiary, Plaman Services, had one New Zealand staff member, and liabilities include more than $21,000 in entitlements, while the bulk of non-current liabilities is $487,095, with parent Plaman Resources.
