Arafura Pearls Holdings in administration

Pearl farmer Arafura Pearls Holdings Ltd has placed itself in voluntary administration after a standstill agreement with lenders could not be reached.
Arafura Pearls said in a brief statement on Thursday it had appointed Korda Mentha's Stephen Duncan and Chris Powell as administrators of the company.
A proportion Arafura's revenue was generated through managed investment scheme (MIS) sales.
Mr Duncan said the company's pearl farming business had creditors owed around $6 million, while investments in the various schemes totalled about $35 million with some 600 members.
"The business will continue to operate on a limited basis under the control of the administrators and we will work closely with the directors and management of Arafura Pearls Holdings to determine the future direction of the company," Mr Duncan said.
"In the meantime, we will be introducing a cost-reduction strategy."
He said it was too early to predict any outcome while Korda Mentha appraised the operations and investigated various options, including restructuring and refinancing the business.
The Perth-based company produces Australian South Sea pearls from its hatchery and farming operations at Elizabeth Bay in north-east Arnhem Land, Northern Territory, and at Croker Island near Darwin.
It employs around 70 people and has to date outlaid some $80 million developing its projects.
The company's shares were placed in a trading halt on April 7, suspended from quotation four days later, and last traded at one cent.