GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) refers to previous announcements it has made in relation to its claim against Eastern Goldfields Limited (Administrators Appointed) (EGS).
The Company now advises that it has agreed the terms and conditions of a Deed of Company Arrangement (DOCA) that contemplate GR Engineering receiving cash and scrip consideration for a proportion of its admitted claim.
GR Engineering notes that completion under the DOCA remains subject to conditions precedent which must be satisfied or waived by the DOCA proponent and/or the Administrators by 30 April 2019. These conditions precedent primarily relate to EGS completing a capital raising.
Based on the value of amounts payable to GR Engineering under the DOCA, GR Engineering will recognise a $1.1 million impairment against its trade receivables. This impairment will be reflected in the Company's half year results for 31 December 2018.
GR Engineering will continue to inform the market of material developments under the DOCA as information comes to hand.