The West Australian reported that CMA Corporation has bedded down the final stage of a recovery from heavy indebtedness that has taken almost two years.

After a 19 month hiatus, the scrap metal recycler's shares resumed trading in September following a AUD 71 million recapitalisation in which international steel trading group Stemcor emerged with a 15% stake.

CMA announced it had completed a debt restructure and refinancing that would deliver new working capital, and term loan and cash-advance facilities.

Stemcor and GE Commercial have provided the financial support.

The board believes the new facilities will support CMA's plans for continuing improvements to our operating performance, chairman Parag-Johannes Bhatt said.

In particular, the new working capital facilities will position us to start ramping up our scrap metal purchases.

This will build on measures already taken to reduce overheads, rationalise loss-making activities and improve the efficiency of our workforce and inventory management.

CMA has a network of more than 20 recycling facilities in Australia, Asia and North America, and a workforce of about 450.

The company, formed in 2005 through the merger of Perth entrepreneur Rob Moltoni's Moltoni Adams and the T&T Group, posted a net loss of AUD 123 million last financial year on write downs of plant and equipment and goodwill.

CMA's shares were suspended in February 2010. It embarked on several attempts to restructure its debt before settling in July this year on an entitlement offer underwritten by Austock Securities.

New chief executive Mr John Pederson, who comes from significant shareholder the Scholz Group, is set to take the reins next month.

(Sourced from waste-management-world.com)