Peter Geroff, for administrators Ferrier Hodgson, said the CPM DOCA provided for its assets and third party liabilities to be acquired by Queensland Energy Resources Ltd with preconditions to be concluded by February 9.

QER is the vehicle of Jeff Sandefer, who went from white knight to predator when he called in the multi-million dollar loan, which had earlier been the companies’ lifeline, in February last year.

He said the proposed DOCA for SPP involved its liquidation after its interest in the Rundle JV had been assigned to a party related to John Browning, a former SPP director and long term shareholder.

Alternate plans to recapitalise the company instead of being liquidated after the Rundle reassignment had been completed were also being entertained so the administrator said it could not say with certainty that SPP shares would not have some future value.

Esso Australia Resources Pty Ltd has begun proceedings seeking orders that prevent SPP from disposing of its Rundle interest in the manner proposed under the DOCA. Esso is a 50% partner in the Rundle project with CPM and SPP having 25% each.

These proceedings are not expected to be concluded before April this year.