Troubled Cloncurry miner CuDeco has gone into liquidation after the deadline passed last week to merge the business with Mt Cuthbert mining operation.
The owner of the closed Rocklands mine, 15km west of Cloncurry has been with the receivers since July 2019 with the mine owing over $60 million to its creditors.
Since opening in 2016, the mine had been shut on multiple occasions by the Queensland Department of Natural Resources and Mines for safety reasons and was suspended in August 2018.
A meeting of creditors on April 7 passed a resolution to accept a Deed of Company Arrangement.
The DOCA provided for a partial repayment or issue of shares to creditors and employees via a Creditors' Trust, to allow the Company to exit external administration by June 30.
It also allowed for a debt and equity raising of at least $50 million to pay off and a merger with Mt Cuthbert Resources, north of Cloncurry.
Former employees would have received 64% of their owings while small creditors with claims less than $50,000 would have received 24%.
The deed admits the current shares in the company are worthless and the company was struck off the ASX earlier this year,
The DOCA was required to be executed with 15 business days after the end of the meeting of creditors by April 30.
However, employees did not pass the resolution agreeing to adjust the statutory priorities for payment of their entitlements pursuant to the proposed deed terms.
Liquidator Cor Cordis says the DOCA was not able to be executed by the April 30 cut off date and no application proceeded in court to adjust statutory priorities.
This triggered the company to have passed a special resolution to be wound up voluntarily.
Retail shareholders are planning a class action with some demanding criminal charges be laid.
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