Overview
Olvera Advisors was appointed as voluntary administrator of Kupang Resources Limited, a listed manganese mining company with operations in Kupang, Indonesia. The appointment followed allegations of director misconduct and complex financial disputes involving litigation funding, cross-border transactions, and competing control interests.
Our team took charge with stabilising the company’s governance, investigating fund misappropriation, and managing the litigation recovery process to protect and preserve stakeholder value.
Challenges
- Director misconduct: The company had a history of director misconduct, with funds misdirected to another entity, Murchinson Metals, by shadow director Philip Grimaldi.
- Structural complexities: A highly complex structure involving multiple funders and corporate entities, including ILP and Cape Lambert Limited, had created competing board control and operational confusion.
- Rising uncertainties: The business had endured shareholder uncertainties after Cape Lambert converted its funding agreement into equity, giving it control of the company.
- Corporate instabilities: A mix of litigation, regulatory oversight, and shareholder pressure required precise management to balance competing interests and restore corporate integrity.
Turnaround Plan
Our team moved swiftly. We began by conducting an extensive forensic investigation into the alleged misappropriation of funds by former directors and major shareholders. This included tracing payments between Kupang Resources, its subsidiaries, and related entities to identify recoverable amounts.
We worked closely with stakeholders to assess the true financial position of the Indonesian manganese operations and the associated management fees in PT Kupang Resources. The team managed proceeds from the settlement of claims against Philip Grimaldi through his bankrupt estate and used these funds to support creditor outcomes.
To ensure accountability and restore trust, Olvera Advisors undertook public examinations into the conduct of individuals linked to the company, including Ben Elias, Antony Sage, and Cape Lambert Limited.
We also managed the recovery actions against insurance providers and Cape Lambert, while coordinating a Deed of Company Arrangement (DOCA) from ILP to achieve a structured recapitalisation. This process was supported by a Section 444GA court application, enabling the compulsory transfer of all shares in Kupang Resources to ILP.
Results
With the completion of the voluntary administration and transition into the role of Deed Administrators, Kupang Resources achieved a successful turnaround. Our leadership ensured that all investigations and recovery actions were concluded effectively, and the company’s litigation proceeds were managed responsibly through Kupang Investments Limited.
The court-approved debt-for-equity swap under Section 444GA allowed ILP to assume ownership, securing the company’s future and providing a clear governance framework.
Key Drivers of Success
- Forensic investigation and governance recovery: Our strategic investigation into director conduct and fund flows exposed critical irregularities and was used as the foundation for recovery and accountability.
- Stakeholder alignment: By maintaining open and transparent engagement with ILP, Cape Lambert, regulators, and shareholders, we ensured collaboration rather than conflict throughout the process.
- Legal precision and compliance: Successful management of the DOCA and Section 444GA application demonstrated our team’s expertise in navigating complex corporate law and capital restructuring.
- Cross-border expertise: Our ability to assess and manage assets and operations in Indonesia was key to accurately valuing the business and ensuring informed decision-making.
Key Takeaway
The Kupang Resources engagement showcased Olvera Advisors’ ability to lead in high-stakes, complex corporate restructures involving governance failure, litigation, and international assets.
Through clear strategy, rigorous investigation, and decisive leadership, we helped restore integrity, deliver creditor recoveries, and guide the company to a compliant and sustainable resolution.
