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McAleese suspends trading, ponders recapitalisation

Rio Tinto iron ore operations have restarted in the Pilbara, Western Australia following the aftermath of Tropical Cyclone Damien in Western Australia.

Embattled transport group McAleese has suspended trading on the ASX this week, and deferred the release of its half-year financial statement, as the company continues to undergo a “strategic process” with advisor Moelis & Company.

McAleese, which floated at $1.47 in 2013, closed at 5.8c a share on Friday, before trading was suspended at the start of this week.

“The company is in discussions with its lenders in relation to a number of alternative recapitalisation proposals, including with external providers of new capital which would involve those parties acquiring the company’s existing debt and the potential issuance of new equity,” McAleese told the market on February 29.

“Discussions in relation to these proposals remain confidential and incomplete.

“Further consideration and negotiation is required before the company will be in a position to provide further detail to the market.”

Promising to update investors by March 7, McAleese requested a suspension from the ASX, which the exchange granted.

“The Company is not able to provide a definitive timeframe for finalisation of the Strategic Process,” McAleese said on Monday. “Given the importance of the Strategic Process to the financial structure and prospects of the McAleese Group, the Directors have decided to defer finalisation of the Company’s financial statements for the six months ended 31 December 2015.

“It is expected that the 1H 2016 Financial Report will be finalised and released to ASX when there is greater certainty about the outcome of the Strategic Process.”

McAleese was carrying $170m of net debt at the end of the 2014/15 financial year.

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