Trucking firm McAleese enters administration after lenders pull the pin

Monday, 29 Aug 2016 09:37:56 | Michael Janda

McAleese's business include Cootes Transport, which was embroiled in safety scandals. (ABC News)

Troubled trucking and logistics firm McAleese has gone into voluntary administration, saying it is insolvent or likely to become insolvent.

The move comes after the firm's financiers, led by high-risk debt investor SC Lowy, pulled the pin on a deal struck in early June to recapitalise the company because it did not meet the precondition of having its rents reduced.

The SC Lowy consortium declined to enter into a further extension of the company's outstanding debts, meaning a raft of principal and interest repayments immediately fell due.

With the company unable to meet the repayments, the McAleese board said it had no choice but to appoint administrators.

The McAleese directors expressed disappointment at the failure of the deal which they said, "provided shareholders with an opportunity to participate in a recapitalised McAleese with substantially less debt and which the independent expert considered to be in the best interests of shareholders.

"McAleese is now in voluntary administration and shareholders are highly unlikely to receive any value for their existing shares."

The company's directors said voluntary administration became the only option to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders.

Joseph Hayes, Jason Preston, William Harris and Keith Crawford from McGrath Nicol have been appointed as voluntary administrators.

However, while McAleese shareholders are unlikely to recover anything, the company said it understands the SC Lowy consortium and interests associated with the company's main owner Mark Rowsthorn will try and implement an alternative transaction to keep the business afloat.

McAleese runs businesses including heavy haulage and cranes, Cootes Transport (which was plagued by safety problems) and resources haulage, particularly with Atlas Iron.

McAleese's Sunshine Refuellers business is not included in the administration.

AustraliaPlus

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Trucking firm McAleese enters administration after lenders pull the pin

Email this to your friend