The company Raub Australian Gold Mining (RAGM) has applied for voluntary liquidation after being embroiled with controversies and suffering great losses.

However, the move was met with several objections at a meeting held with the creditors today.

According to RAGM's statement of affairs, which was presented at the meeting, the company recorded an estimated deficiency of RM293,345,093.

The meeting of creditors was held at liquidator Ferrier Hodgson's office at Bangsar South City in Kuala Lumpur.

The statement of affairs as at April 28, prepared and signed by RAGM director, was presented to the creditors by Ferrier Hodgson director Lim Litt who chaired the meeting.

A vote was called for the appointment of Heng Ji Keng and Andrew Heng as liquidators for the process.

However, certain creditors, including the representatives from Bank Rakyat, raised objections to the motion.

They pointed to the issue of conflict of interest as Ferrier Hodgson had assisted RAGM in the scheme of arrangement.

The creditors then demanded that the meeting be adjourned so that they can proceed to appoint an independent liquidator.

Citing the Companies Act, Lim (photo) said creditors should write in to propose the appointment of another liquidator, in which case, they have to bear the cost of the meeting.

Alternatively, the creditors were told that they can bring the matter to court.

Lim added that Ferrier Hodgson was also acting for the creditors in preparing the scheme of arrangement, hence, the firm was independent and the issue of conflict of interest did not arise at all.

A total of 71 creditors cast their votes, and the resolution for appointing the duo as liquidators was passed with a majority.

Ban Cyanide Action Group (BCAC) vice-chairperson Hue Shieh Lee, who was present at the meeting, claimed that RAGM owed them costs ordered by the court in a defamation suit.

Hue tried to register herself as a creditor but failed as her name did not appear on the creditors list.

BCAC is an interest group concerned about the health of residents from Bukit Koman in Raub, Pahang.

It is understood that there are a total of 342 creditors on the RAGM's creditors list, which included companies and individuals. However, less than a hundred of them attended the meeting.

Company claimed 'uncertain financial position'

In 2014, Peninsular Gold Limited, which owns RAGM, announced that it had requested a suspension of trading of its shares on London Stock Exchange’s AIM market pending clarification of its uncertain financial position.

It also halted its operations in Raub pending resolution over a number of additional requirements set by the authorities.

In the past years, RAGM's gold mine operation at Bukit Koman had drawn strong protests from local residents.

They were worried that the cyanide used for gold extraction was hazardous to the villagers living nearby, an allegation which RAGM denied.

Following this, RAGM initiated defamation suits against three members of BCAC, which had been campaigning against the company.

Apart from Hue, they sued BCAC's chairperson Wong Kim Hoong and secretary Hue Fui How.

Subsequently, Wong and Fui How apologised in open court to RAGM over their statements and RAGM withdrew its suit against the duo.

The Court of Appeal in October last year dismissed an appeal by RAGM against a High Court judgment which favoured Hue. The court also ordered RAGM to pay Hue RM20,000 in costs.

While in May last year, High Court judge Rosnaini Saub dismissed the gold mine’s claim against Malaysiakini and three other defendants, all of whom are members of the news portal's editorial team.

However, RAGM is appealing the decision and the case is currently heard in the Court of Appeals.