05/02/2016 - 13:48

McAleese expects $55m impairment

05/02/2016 - 13:48

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Transport and logistics business McAleese Group has flagged an impairment of up to $55 million in its half-year accounts, while remaining quiet on speculation of a recapitalisation plan.

McAleese expects $55m impairment

Transport and logistics business McAleese Group has flagged an impairment of up to $55 million in its half-year accounts, while remaining quiet on speculation of a recapitalisation plan.

McAleese said in a statement today it was assessing the carrying value of its divisions in the context of the continuing fall in commodity prices and lower activity in the resources sector.

“While this process is ongoing and remains incomplete, the company expects to recognise between $35 million and $55 million of non-cash impairment charges against the carrying value of its assets,” McAleese said.

It also responded to media speculation this morning that the company was planning on releasing details of a recapitalisation proposal as part of its strategic process.

“The strategic process continues in line with the company’s expected timetable,” it said.

“Multiple parties continue to express an interest in participating in a recapitalisation of the company.

“It remains premature for the company to comment on potential structures, terms or outcomes and there can be no certainty that the strategic process will yield an outcome.”

In a media report this morning, it was alleged that private equity firm Kohlberg Kravis Roberts (KKR) wants to acquire a stake in McAleese in order to diversify its transport business, McColl’s Transport.

McColl’s is an independent carrier of milk and bulk chemicals, with more than 430 employees, 190 prime movers and 500 tankers across 15 depots and six workshops nation-wide.

McAleese plans to provide an update towards the end of the month.

Moelis & Company is acting as adviser to McAleese.

McAleese shares closed 1.9 per cent higher to 5.3 cents each.

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