Business

Creditors approve proposal to save Boulder Steel project

Paul Sundstrom
Paul Sundstrom Luka Kauzlaric

THE Boulder Steel project planned for Gladstone took a major step forward on Tuesday when creditors agreed to a new proposal.

Otsana Capital, working closely in conjunction with Paul Sundstrom, were successful proponents of the Deed of Company Arrangement (DOCA) proposal for Boulder Steel Ltd (Administrator Appointed) (Boulder Steel), owner of the Gladstone Steel Project at an adjourned second meeting of creditors on Tuesday morning.

The existing shareholders of Boulder Steel will now be required to approve resolutions at a shareholders meeting, estimated to be held in the next three months.

Mr Sundstrom said this should not be a significant hurdle.

He said he was very comfortable working with the Otsana people and was quietly confident "that together we will get the job done and deliver those 1800 permanent jobs that are at stake".

It is expected that significantly more jobs will be created during the construction phase of the project, which Mr Sundstrom said would be a huge benefit to the local community and businesses.

He will be working closely with Otsana over the period leading up to the shareholders meeting to preserve the value of the Gladstone Steel Project and ensure all the necessary steps are taken for Boulder Steel to realise the DOCA.

According to its website, Otsana Capital specialises in IPOs (initial public offerings), corporate restructuring and recapitalisation of ASX-listed companies.

Its team has specialist skills in mergers, acquisitions, capital raisings and listing ASX companies.

Its aim is to "do projects that we think are important and also contributing to noble causes we value".

Topics:  boulder steel, business, gladstone, steel plant




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Why ratepayers will fork out for fake grass on roundabouts

ASTRO TURF: Toolooa St make over could save the council big bucks in the long run. Photo Declan Cooley / The Observer

IT will save thousands and put an end to traffic jams.

GLNG plant production ramps up production with new train

An aerial view of the three LNG projects on Curtis Island.

SANTOS to increase production after bringing second train online.

Curtis Island Bechtel 'workers flagged as high risk' by ATO

Aerial View of Cement Australia, Gladstone with Curtis Island in the back ground. Photo Brenda Strong / The Observer

SOME Bechtel workers will now be on an ATO hit list, an expert says.

Latest deals and offers

Sandstone Stories: Cania Gorge

HELLO TOURISTS: Cania Gorge National Park is one of the prominent tourist attractions in the Central and North Burnett Times. Photo contributed by Tourism and Events Queensland

Sandstone Stories is a tourism initiative showcasing the Southern Great Barrier...

Malcolm Turnbull and Barnaby Joyce tour Rockhampton sweet potato farm

Prime Minister Malcolm Turnbull and Deputy Prime Minister Barnaby Joyce visit a...

Baby wearing dance class

Dance Kix instructor Donna Hann during the Bounce Back baby Mums class. Photo Tegan Annett / The Observer

Dance Kix offers a baby wearing dance class once a week at Calliope.

Gladstone's 10 cheapest houses for sale

ALL of the houses are selling for well under $200,000.

Gladstone hits top in state for vacancies

Gladstone has the highest residential rental vacancy rate in Qld