Creditors allow for Wakefield Transport extensionDOWNLOAD
26 June 2008: Creditors of the Wakefield Transport Group of companies in Mildura today agreed to the administrator’s recommendation for an extra 45 business days to finalise the sale process.
Simon Wallace-Smith, Deloitte Corporate Reorganisation Group partner, informed the creditors that there continues to be strong interest from four parties to buy the Mildura-based group.
“What is also encouraging is that there continues to be very strong support from the customers and suppliers. They all understand the important services that Wakefield Transport provides to the region and wish to see an outcome that will benefit all parties,” Mr Wallace-Smith said.
“The sale process for the road and rail business has gone more slowly than anticipated. There are still four parties we’re in discussions with and I’m optimistic we will get an outcome in the next few weeks.”
Mr Wallace-Smith told the creditors meeting the main road and rail company, Iron Horse Intermodal Pty Ltd, is operating profitably.
He also informed them that Storage and Distribution Network Pty Ltd, which provided supply chain management services including warehouse and delivery services from Adelaide, Barossa Valley, Brisbane, Melbourne and Sydney, was closed on the 31 May 2008. This was due to continuing losses and the lack of interest to purchase the business.
Mr Wallace-Smith was unable at this stage to give any estimate of the potential return to unsecured creditors. He will continue to update creditors when there is a completion of the sale process.
Partner, Corporate Reorganisation Group
Mob: +61 (0) 417 342 630