NEW YORK Australian recycling group CMA Corp. Ltd. has filed for a voluntary suspension in the trading of its shares listed on the Australian Securities Exchange.
The Perth, Australia-based company owns a facility in Chicago along with 19 other facilities in Australia and Asia.
In a statement released Aug. 1, CMA chairman Parag-Johannes Bhatt said the companys inability to pay Stemcor Australia Pty Ltd. interest amounting to about $2 million by July 31 had forced it to request the suspension.
In June, the company proposed the sale of its U.S. assets to Scholz US for $12 million after the latter increased its offer from $7 million.
In a letter dated June 28, Bhatt told shareholders of a proposal to sell CMAs wholly owned subsidiary, CMA USA Corp. Ltd., together with intellectual property attached to Meretec, CMAs proprietary process for removing zinc from galvanized and coated steel.
Bhatt said proceeds from the sale will be used by CMA to repay part of the existing debt owed to Scholz, which is a long-term strategic partner of CMA and its largest shareholder at 47.48 percent through Scholz Invest. Scholz US is an associate of Scholz Invest.
Company filings show that its debt repayment issues accelerated when Stemcor advised CMA on May 28 it could no longer support CMAs inability repay the debt.
CMA has sought shareholder approval for the continuation of prepayment facilities with Stemcor and Scholz.
When contacted, CMA US general manager Andrew Barker said he was not available for comment.