Legal Claim Raises Financial Pressure on Australian Pacific Coal

Statutory Demand Raises Financial Questions

Australian Pacific Coal Limited (ASX – AQC) has disclosed it was served a statutory demand by M Resources Trading Pty Ltd for a sum exceeding A$1 million. This demand relates to a management and advisory fee that was publicly announced over a year ago, in May 2023. The company is currently evaluating the legitimacy of this claim and considering its next steps.

Context of the Debt and Company Response

The statutory demand, a formal legal notice requiring payment, signals a significant financial obligation that AQC must address. While the company has not yet confirmed whether it will comply or dispute the demand, it has committed to providing further updates. This development introduces an element of uncertainty for investors, especially given the size of the claim relative to the company’s financial position.

Operational Outlook Remains Steady

Despite the legal notice, Australian Pacific Coal continues to advance its mining operations at the Dartbrook Coal Mine in New South Wales. The mine, located in the Hunter Valley region, recently resumed underground mining following a successful restart capital program in 2024. Dartbrook is a key asset for AQC, known for producing high-quality thermal coal, and the company’s focus remains on leveraging this resource.

Implications for Stakeholders

The statutory demand could have broader implications beyond the immediate financial claim. It may affect AQC’s liquidity and potentially its relationships with creditors and partners. Investors will be watching closely to see how the company navigates this challenge and whether it impacts ongoing projects or future capital raising efforts.

Looking Ahead

As Australian Pacific Coal assesses its options, the market will be keen to learn how this dispute resolves. The company’s ability to manage this legal and financial hurdle while maintaining momentum at Dartbrook will be critical in shaping its near-term outlook.