Logistics, Ports & Terminals, Mining and Heavy Industries

Lenders send McAleese into voluntary administration

Atlas has worked out better deals with its contractors. Photo: James Lauritz.

Embattled trucking and logistics firm McAleese went into voluntary administration on Monday, after a recapitalisation deal struck in June was yanked by lenders.

A consortium led by SC Lowy voided the recapitalisation deal on August 26 as McAleese was unable to secure a reduction in real property rental costs.

“The … condition was not satisfied and the failure to meet that condition was not waived by the SC Lowy Consortium,” the company told the ASX, “ending the forbearance arrangements with the SC Lowy Consortium.

“As a result, McAleese’s uncompromised senior debt and all accrued interest was immediately due and payable.

“This left the board with no choice but to place the McAleese Group into voluntary administration in order to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders.”

In an interview with the AFR, McAleese’s chief executive Mark Rowsthorn reportedly acknowledged he could have done “some things differently,” but said the collapse of the mining sector had been a key factor in the company’s failure.

“It’s unfortunate that McAleese, which is largely a resources-based company, has been in the middle of it,” Rowsthorn was quoted as saying.

“The company is actually performing quite well operationally, it’s just through this debt restructure, the earnings in parts of the businesses – particularly Queensland for our heavy haulage and crane business – has been really poor, and that’s just volume, [a] lack of new projects.

“We put a lot of work in putting a solvent structure together and unfortunately that hasn’t played out.”

Pilbara junior iron ore miner Atlas Iron, which uses McAleese as its primary trucking provider, advised shareholders that it had been informed by administrators that services would continue moving iron ore from Atlas’ three mines to Port Hedland, at an annualised rate of 14mtpa to 15mtpa, while administration activities took place.

Leave a Reply

Send this to a friend