The Westwater family is facing a major financial crunch after its financial statement was leaked online.
Westwater Resources said it had been told there’s “no money” to be made from the water resources business but that the company was not being forced to sell assets.
It said the leak “is the result of a combination of circumstances including a very significant cost of investigation and the nature of the information disclosure”.
Westwater said it “would not be commenting on the situation at this stage”.
The company has been struggling to pay for its debts since 2014 and it has lost $2.4 million in the past two years, as it struggles to cover a debt-laden business model that has seen it take on debt to finance its expansion.
Its shares are down nearly 60% in the last year and its debt is worth more than $2 billion.
The family of the late Steve Westwater have been fighting a legal battle with the Federal Court to keep the company’s assets private.
The Westwater Family Trust owns more than 75% of the company and is responsible for paying debts to Westwater and for providing legal advice and support to the company.
In March, a federal judge ruled Westwater should keep the trust’s assets, saying it was “in the best interests of the business”.
“The trust’s legal obligations are not a barrier to continuing the operation of the Westwater company and there is no reason why it should not continue to do so,” the judge wrote.
The trust was created to take over the Westwood company in 2007 and the family says it should have kept its assets.
WestWater Resources declined to comment on the decision, but said it was aware of the court decision.
The family has been fighting to keep its assets private because of the financial pressure on the company as it attempts to raise money to pay its debts.
“Westwater’s management has acknowledged the financial position and financial difficulties facing the business and has agreed to take urgent steps to address these issues,” a Westwater spokesperson said.
Westwater has said it will continue to operate its business in the Westwoods and it will seek to recover some of the $2 million it owes to creditors.
A Westwater spokesman said: “Westwater continues to work closely with creditors to try to address its debts and continues to seek advice on the best course of action.
There is no money to be found to meet the company or its liabilities and there will be no sale of any assets.”
West Water continues to look to expand its operations and expand our customer base to meet growing demand in Australia and around the world.
We are focused on meeting our customers’ needs and our customers are our primary concern.