Landowner: Madison has no assets to cover debts

Business, Normal


A PRINCIPAL landowner at Mt Kare gold tenement has expressed concern that Madison Enterprises (PNG) Ltd has no assets with which to pay its shareholders including Mt Kare-Puga Development Corp (MKDC).
But liquidator Deloitte Touche Tohmatsu has advised that any issues relating to certain arrangements with Madison must be brought up with the liquidator before it sells the results of Madison’s previous exploration.
So everyone concerned who claim to have missed out on certain benefits that Madison was to have carried out, must go to Deloitte before they miss out.
An unnamed officer close to the liquidator said the proceeds from the sale would be used to honour genuine commitments Madison had with entities, individuals and organisations that rendered their services.
MKDC chairman Anginape Mapia recently said they had not seen any physical assets on the ground for the last 12 years that could be sold by the liquidator to pay the shareholders.
“I wonder how many assets does Madison has that will attract investors,” Mr Mapia said.
“We are afraid of losing interested reputable investors because no company would want to clean up the massive liabilities and debts incurred over the past 12 years estimated to be over billions in kina,” Mr Mapia said.
 “All these debts include both commercial creditors and landowners’ compensation claims for environmental damages and others,” he said.
Mr Mapia stressed that they were kept in dark as to what they would get from the sale.
Deloitte will deal with a 10% free carried interes in the project through to feasibility studies and other debts incurred.