ASX-listed AnaeCo has gone into administration after Monadelphous Group terminated an $11.5 million contract with the waste technology company and a Chinese enterprise.
Under the agreement Xiaoqing Environmental Protection Technology was set to purchase part of a loan owed by AnaeCo to Monadelphous in a debt-for-equity swap that would have given XEPT a 55 per cent stake in AnaeCo.
AnaeCo built the long-delayed WMRC waste treatment plant in Shenton Park and Monadelphous formed a joint venture with the company in 2010, with the engineering group hoping AnaeCo’s business model would provide a future pipeline of infrastructure work for the business.
The WMRC project was expected to be fully operational before the end of 2012, however it suffered numerous delays and setbacks; with the project finally reaching completion at the start of 2016.
Monadelphous said XEPTC had received multiple extensions to the deal.
“Despite Monadelphous being ready, willing and able to complete the transaction, and after having afforded XEPTC multiple extensions to the transaction sunset date, XEPTC has not fulfilled its completion obligations under the agreement,” the engineering group said.
“Monadelphous intends to pursue XEPTC for damages resulting from non-performance under the agreement.”
AnaeCo said it would continue to operate on a business as usual basis until further notice.