Interest default forces Natural Fuel’s collapse

Australian renewable energy company Natural Fuel Ltd., which was in the process of ramping up biodiesel production facilities in Singapore, has collapsed after failing to meet an interest payment. Shares in Natural Fuel have entered a trading halt pending an announcement regarding the company’s financial position before company directors appointed administrators Andrew Saker, Darren Weaver and Martin Jones, of turnaround service provider Ferrier Hodgson. SSeveral factors were blamed, including an interest payment, which was due on April 10. The administrators said they would need to investigate further and emphasized that Natural Fuel is not in a position to raise new funds through debt or equity. The future of Natural Fuel had been unclear since it was forced to put its subsidiary Natural Fuels Australia into administration in September last year, after its joint venture partner in its troubled Darwin biodiesel plant, Babcock & Brown Ltd., which has also gone into administration, withdrew funding from the project. It made A$64.9 million (US$46.7 million) loss for 2007 to 2008 and a A$47.5 million (US$34.2 million) net loss after tax for the six months to December 31, 2008. (April 14/15, 2009)