Voluntary Administrators appointed to HMP Constructions Pty LtdDOWNLOAD
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The Directors of HMP Constructions Pty Ltd have appointed Deloitte partners, John Greig and Nicholas Harwood, as voluntary administrators to investigate the affairs of the business.
The mining services company has around 190 creditors who are owed approximately $150m. The majority of the debt relates to equipment finance.
The process of voluntary administration is designed to resolve the future direction of a company quickly to either save the company or ensure that creditors get the best possible return. According to Mr Nicholas Harwood, “The first aim of the voluntary administrators will be to assess the circumstances of the business and explore the options available.”
The voluntary administrators will be writing to all creditors shortly to provide notice of the date of the first meeting of creditors. The first creditors’ meeting is usually held within eight business days.
The complete findings and recommendations of a voluntary administrator are provided at the second creditors meeting, which is typically held within a 20 business day convening period.
“The Directors felt it necessary to consider the appointment of an Administrator following notice of a services contract termination. GE, NAB and St George have appointed a common Receiver & Manager to their individual assets. The financiers indicated they will be receiving progress reports from the Administrator before they make a final decision,” he said.
Mr Harwood stated that there are approximately 500 employees with the business. “The voluntary administrators will be closely investigating ways to preserve the jobs of employees, however, staff at the Goonyella mine site have been informed that they will be affected due to the termination of the contract,” he said.
One of the first tasks completed by the voluntary administrators has been to reinstate an account with an accommodation provider in Blackwater to ensure that staff will not be required to pay with their personal credit cards. They are now quickly opening new supplier accounts to allow ongoing trading.