ALLSTATE Explorations is poised to emerge from its bitter five-year insolvency, after its administrator and Macquarie Bank accepted a takeover proposal from Beaconsfield Gold that will finally see creditors of the Tasmanian gold mine paid in full.

Allstate administrator, Michael Ryan, announced yesterday the Allstate companies would come out of administration - subject to a creditors’ meeting on February 27 - after Macquarie Bank agreed to a “standstill arrangement” on the remainder of its debts.

Allstate had been in administration for five years paying off a $77 million debt to Macquarie, which the bank had bought for $300,000.

Operations at the deep-underground mine near Launceston have been on care and maintenance since the fatal rockfall on Anzac Day last year that killed miner Larry Knight and trapped Todd Russell and Brant Webb underground for two weeks. With the corporate impasse between warring joint venture partners now resolved, mining is scheduled to restart next month.

“It’s been a very long road but it’s encouraging that we are near the end of it,” Beaconsfield chief executive Bill Colvin said yesterday.

The Australian Workers’ Union boss Bill Shorten applauded the agreement. “It’s good to see that workers at the Beaconsfield Mine will not lose continuity of employment or entitlements as a result of this deal,” Mr Shorten said.

Under the restructuring, Beaconsfield will advance $1.18 million to Allstate to pay out trade creditors owed since Allstate was put in administration in mid-2001.

Other creditors, including Macquarie, Newmont and the Tasmanian Government will forgive or defer their debts.

Macquarie Bank, which has been financing Allstate under an indemnity, is believed to be owed more than $6 million: $3 million in contributions to the joint venture and another $3 million to fund corporate costs such as lawyers and the costs of administration.

“Macquarie will not vote against the DOCAs (deeds of company administration) ending and will enter into a standstill arrangement with the Allstate Group of companies in respect of financial accommodation provided by Macquarie,” administrator Michael Ryan said.

Negotiations with Beaconsfield Gold had been productive, he said, and subject to final documentation “the Allstate Group should be out of administration by the end of this month”.

The Tasmanian Government-appointed special inquiry into last year’s rockfall, headed by Greg Mellick QC, is also expected to report at the end of this month.

Beaconsfield will own 82.8 per cent of Allstate shares after giant US goldminer Newmont agreed to sell its 57 per cent stake last month.

source news : www.ntnews.news.com.au