Liberty Bell Bay to close as sales process collapses
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The news: GFG Alliance’s Liberty Bell Bay manganese smelter will be closed after its administrators at EY Parthenon said an ongoing sales process collapsed.
The context: The administrators had entered an agreement with a consortium consisting of Adroit Capital Group, a private investment and project management group, and White Oak Global Advisors for exclusive negotiations for acquisition of the smelter in May.
But the consortium informed the administrators on 15 July that it had “ceased pursuing the sale transaction, following difficulties with enabling arrangements, including a range of operating requirements”, according to EY Parthenon.
The decision to begin shutting the facility immediately has been made in the absence of a “commercially viable transaction, and the funding required to continue operations”.
Employees were notified on Thursday morning that the outcome of the recent redundancy consultation process will be communicated by midday on Monday.
The company said it will retain a small workforce to safely demobilise the site, manage the sale of remaining assets and meet its ongoing environmental and regulatory obligations.
What they said: “This is an incredibly disappointing outcome for employees, their families and the wider Bell Bay community,” administrator Morgan Kelly said.
“Over the past several weeks, all parties worked diligently to pursue a transaction that would preserve the smelter and secure ongoing employment. However, the difficulties with key enabling arrangements means there is no viable pathway to complete the proposed transaction or pursue an alternate transaction,” he added.
The source: EY media release
