Bandanna and Credit Suisse have been negotiating to restructure the senior secured guarantee facility agreement (SSGFA). Bandanna has been in talks in order to secure the take or pay obligations of Springsure Creek Coal to Wiggins Island Coal Export Terminal (WICET) for ship loading capacity and to Aurizon for rail access.

During the negotiation, the company said that it also explored alternative funding sources including from Credit Suisse, existing and potential new major equity investors as well as option for binding commitment for sales of the asset.

Since the company could not raise funds to progress towards securing mining lease, it decided to go for voluntary administration.

Bandanna chairman John Pegler said: "Over the past few years, the BND Group has made substantial progress towards the development of the Springsure Creek project including obtaining EIS Approval from the Queensland Government, environmental approval from the Commonwealth Government and broad support from the local community and local government.

"Unfortunately, progress has been impacted by delayed approval of the Springsure Creek mining lease and the deepening cyclical decline in seaborne thermal coal prices, which together have further exacerbated delays in investor interest and participation."

Locted 47km south-east of Emerald, Springsure Creek underground coal mine has potential to produce 5.5 million tonnes of coal per year.

The mine is expected to employ close to 600 people and has an estimated life-span of 40 years.