Boulder rescue begins as $50k lodged with administrators

Plans for the Boulder Steel development in Gladstone.
Plans for the Boulder Steel development in Gladstone. Contributed

THE community proposal to rescue Boulder Steel was lodged with administrators on Friday, bringing the rescue group one step closer to its first milestone of gaining control of the company.

The initial hurdle, a target of $50,000, was successfully raised and lodged with the proposal.

To be confident of persuading the creditors to vote for the community's proposal, another $300,000 needs to be raised by the end of March, and Boulder rescue co-ordinator Paul Sundstrom said they were almost a further $50,000 on the way.

"To show the creditors how serious we are, the plan is to progressively lodge the funds with the administrator," he said.

The important vote is expected to occur early next month and, if successful, the rescue group will have until the end of March to lodge the promised funds.

Mr Sundstrom commended the community for coming together to support the endeavour.

"It's an ongoing process of fundraising and we must keep going so we can get control of the company," he said.

"We need to show them we're serious."

Mr Sundstrom said until this point the rescue group had been uncertain whether some, or all, of the $50,000 deposit would be refundable.

"We have now confirmed that it, and any further deposits with the administrator, is refundable, and if the creditors vote down our proposal then 100% of the contributions received will be promptly returned," he said.

The administrators, Nicols and Brien, are expected to publish a notice to creditors at the end of this month via ASX, when all proposals will be available for viewing.

The creditors vote will be held about seven days later.

"I do apologise for the delay in responding to inquiries made last week," Mr Sundstrom said.

"We got totally flattened by the great response from the community, while in the critical final stages of putting our proposal together for lodging on Friday."