18/03/2014 - 15:01

GFR calls in administrators

18/03/2014 - 15:01

Bookmark

Save articles for future reference.

Mine site water infrastructure group GFR has become the sixth Perth-based company to call in administrators in as many weeks, citing deteriorating trading conditions and significant contract delays.

Mine site water infrastructure group GFR has become the sixth Perth-based company to call in administrators in as many weeks, citing deteriorating trading conditions and significant contract delays.

Perth-based GFR has appointed FTI Consulting senior managing directors Michael Ryan and Ian Francis as administrators, leaving an uncertain future for its 150 employees.

GFR said the appointment reflected the difficulties faced by smaller contractors in the current economic conditions.

"Given the difficult operational outlook and near-term cash flow requirements, the directors believe the responsible course of action for all parties, including creditors and employees, is to voluntarily appoint administrators," the company said in a statement.

GFR posted revenue of $27.6 million in the 2013 financial year, well down from the $65 million revenue it achieved in FY12.

The company was founded in 1986 as Goldfields Reticulation and went onto establish support sites in Perth, Tom Price and Melbourne.

GFR is the sixth Perth-based company to call in administrators since the beginning of February, with contractor Forge Group the most prominent.

Forge last month appointed Ferrier Hodgson partners Martin JonesAndrew Saker and Ben Johnson as voluntary administrators of the company, while financier ANZ Banking Group appointed KordaMentha partners Mark Mentha and Scott Langdon as receivers and managers.

Mirabela Nickel meanwhile appointed KordaMentha partners Martin Madden, Cliff Rocke and David Winterbottom as voluntary administrators as part of a complex restructuring that involves placing the company into administration, raising new capital and implementing a debt-for-equity swap.

Residential builder Mi Construction Pty Ltd, which traded as Mi Construct and was based in Northbridge, also slipped into administration last month, with Avior Consulting appointed to liquidate the company’s assets.

Other companies which have appointed administrators in recent weeks include motor accessories group MALZ Motoring & Leisure Zone, and trucking logistics company Kitson Group.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options