HWE investors to get nothing

HENRY Walker Eltin has become the second failed company in the past fortnight, following Sons of Gwalia, to confirm that shareholders will not recover any of their money. In a report to creditors, the administrators of HWE said “it was unlikely there would be any return to shareholders”. They estimated financial creditors would receive between 65 cents and 100 cents in the dollar, while trade creditors would receive between 10 and 65 cents. The administrators have recommended that creditors approve a scheme of arrangement rather than liquidation of the group. They said a scheme would streamline the process for adjudication of claims, reduce costs and accelerate the payment of distributions to creditors. Many of HWE’s assets have already been sold and administrator Scott Kershaw of McGrathNicol + Partners said final returns to creditors would depend on the sale of its largest business unit, mining services. Macquarie Bank is advising the administrators on the dual track sales process for the mining services business, in which a trade sale and a recapitalisation are being jointly assessed. The creditors’ report said the total cost of the administration was likely to be $9.5 million.