Latest Update on Lafayette
02 January 2008
Carlos Dominguez of Lafayette Philippines Inc. has been oft-quoted in press releases as saying: “this temporary legal process we are going through is actually a blessing for the Rapu Rapu project because it will resolve the financial issues the local management team has been urging LML to address.”
Somehow, the truth has an uncanny way of surfacing out, like dead fishes. No matter how much you try to scoop 'em & bury 'em as quickly and stealthily as you can, at one point, Murphy's Law will catch up on you. When that happens, you won't just have to contend with a respectable fish kill, but also big investor pull-out, creditors coming out of the woodwork, activists breathing down your neck... You know what they say about the weather these days in Albay: when it rains, it pours.
Here's an excerpt from the "Full Statement of Lafayette Mining Ltd. to the Administrators Ferrier Hodgson", dated 20 December 2007, but released today 020108. (http://saverapurapu.blogspot.com/)
7. By 17 December 2007, it was also evident that
8. Given all of the above, the Board of Lafayette met on 18 December 2007, and being of the view that they no longer had reasonable grounds to believe that the Company could meet its obligations as and when they fell due resolved to voluntarily appoint Messrs Sutton and McCluskey of Ferrier Hodgson to the role of Administrator. In making this appointment, the Board expected that the Administration process would allow all options for either the sale of the Project or a restructure and recapitalization of the
So Lafayette is not bankcrupt.
- It just won't be able to pay Leighton just yet.
- It just couldn't make ends meet by 31 December 2007.
- Its parent company in Australia just won't be able to meet its obligations.
- And it's now just being ran by the banks.
I wonder what the Lafayette people will say about this interesting piece of news. I wonder what text messages will I be getting this time.