Why Has AQC Suspended Trading Amid Dartbrook Mine Turmoil?
Australian Pacific Coal Limited has voluntarily suspended trading following the appointment of administrators and receivers at its Dartbrook Mine operator entities, signaling significant financial distress within the joint venture.
- Voluntary suspension of AQC securities effective immediately
- Appointment of voluntary administrators to Dartbrook Mine operator entities
- Receivers and managers appointed by secured creditor Vitol Asia Pte Ltd
- Events of default triggered under secured financing facilities
- AQC assessing financial uncertainty and parent company guarantee exposure
Voluntary Suspension and Immediate Impact
Australian Pacific Coal Limited (ASX, AQC) has requested an immediate voluntary suspension of its securities on the ASX following a series of distressing developments at the Dartbrook Coal Mine. The suspension, effective from 4 July 2025, will remain in place until the company releases further information or until 7 July 2025, whichever comes first. This move reflects the company’s need to assess and communicate the implications of recent operational and financial upheavals.
Administration of Operator Entities
The Dartbrook Mine is operated by an unincorporated joint venture between AQC and Tetra Resources. On the evening of 3 July, Deloitte SRT Pty Ltd was appointed as voluntary administrators to four key operator entities, Dartbrook Operations Pty Ltd, Dartbrook Services Pty Ltd, Dartbrook Commercial Pty Ltd, and Dartbrook Assets Pty Ltd. This appointment signals significant operational distress, as administrators take control to manage the affairs, business, and property of these entities.
Receivership Triggered by Secured Creditor
Following the administration, Vitol Asia Pte Ltd, the secured creditor to the Dartbrook Joint Venture, declared events of default under its secured financing facilities. Vitol accelerated repayment demands and appointed receivers and managers from FTI Consulting to take control of the secured assets, including shares in AQC Dartbrook Pty Ltd and certain reserve accounts. This enforcement action underscores the severity of the financial challenges facing the joint venture and the potential for significant restructuring or asset disposals.
Financial Exposure and Guarantees
AQC has confirmed it provided a parent company guarantee for all amounts owing under the secured facility at the time of its execution in January 2024. The company’s directors are currently evaluating the financial uncertainty arising from these developments. The extent of AQC’s exposure, potential liabilities, and the impact on its broader operations remain unclear, pending further announcements.
Looking Ahead
The Dartbrook Mine, located in the Hunter Valley, has historically produced high-quality thermal coal and recently resumed underground operations following a capital restart program in 2024. However, the current financial and operational turmoil threatens this momentum. Investors and stakeholders await AQC’s forthcoming update to understand the full implications for the joint venture’s future, operational continuity, and the company’s financial health.
Bottom Line?
AQC’s next announcement will be pivotal in clarifying the future of Dartbrook and the company’s financial resilience.
Questions in the middle?
- What is the full extent of AQC’s financial exposure under the parent company guarantee?
- How will the receivership affect ongoing operations and coal production at Dartbrook?
- What restructuring or refinancing options are being considered to resolve the default?
