The recently appointed chief executive officer of Whitehaven Coal of Australia doused speculations of a possible sale of the shareholdings of Nathan Tinkler in the company. While Tinkler's fortunes continue to plummet, so does the share values of the firm in the Australian bourse.
According to CEO Paul Flynn who talked with Reuters, the mining company is not in any discussion with any potential buyer and does not have any inkling if an interested buyer is waiting in the wings. This means that the 19% shareholdings of Tinkler is in no danger of being put in anyone else's hands in the near future.
Flynn said, "We don't have any potential proposals before us in that regard nor discussions about those things in any ongoing fashion."
The rumors of the pending sale was fueled by one of Tinkler's creditors, Noonday Asset Management. Noonday is a unit of Farallon Capital Management LLC, a US based hedge fund. Noonday wants to enforce the proceeds of their US$600 million loan to Tinkler.
Unfortunately, the denial by the CEO of Whitehaven Coal only serves to fuel the fate of the mining firm, which has seen its profits and values plunge because of the 35% decline in the world prices of coal.
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