Kagara enters administration

Company News

Troubled base-metal mining company Kagara Limited (ASX:KZL) has appointed voluntary administrators after failing to meet its debt obligations.

The administrators will work to independently investigate the affairs of the company and recommend options for its future.

Just last month Kagara shares sank to a record low after announcing it would suspend a mine in Queensland to cut costs.

Earlier this year Kagara announced job cuts, the resignation of its founding chairman Kim Robinson and that it had offloaded its nickel assets to Western Areas NL (ASX:WSA).

Shares in Kagara were suspended from trade last week, having plunged more than 50 per cent this year and last traded at 0.12.

Kagara booked a net loss of $49.785 million in the first half of the 2012 financial year.