Administrators of Eastern Goldfields say their preliminary investigations into the Michael Fotios-led company show it may have been trading while insolvent for as long as 15 months before its collapse in November.
A report from Ferrier Hodgsons Martin Jones and Andrew Smith shows the company could have fallen into insolvency as early as August 2017, when operations began at the Davyhurst mine near Kalgoorlie, with cash flows failing to cover operating costs and trade payments.
From that point the same month the company spent one day in the hands of court-appointed administrators after falling foul of a wind-up application its financial troubles deepened.
Reputational damage from the wind-up order led some suppliers to demand the company p…
Read the full article at: https://thewest.com.au/business/mining/query-from-administrators-of-eastern-goldfields-over-fotios-gold-play-ng-b881084078z