Australian maintenance services provider Programmed has taken over the operation of Pindan Group's asset management arm today, a move expected to preserve more than 100 jobs.
In an update released by Pindan Group’s administrators at EY, it was confirmed Programmed had been selected as the preferred bidder and would operate Pindan Asset Management under licence from June 9.
It is understood a large number of parties had expressed interest in the acquisition of Pindan Asset Management and had been engaged in a due diligence process.
Administrators said the acquisition would ensure uninterrupted service delivery and provide the entity with immediate financial support and facilitate the continuation of its services and rebuild confidence with its clients and suppliers.
However, administrators are expected to retain an oversight role during the licence period, but Programmed will be responsible for service delivery and associated liabilities.
A meeting of creditors is expected to be scheduled in mid to late July to consider the terms of the transaction, which are expected to involve a recapitalisation and share sale delivered as part of a Deed of Company Arrangement.
The sale is expected to deliver a better return for Pindan Asset Management's creditors than a closure and liquidation.
EY has been delving into the affairs of the embattled construction giant since being appointed administrators of three Pindan Group subsidiaries and as liquidators to a further nine entities late last month.
The 44-year-old multi-disciplinary construction business had 280 staff at the time of its collapse and is understood to have engaged up to 500 subcontractors and 400 trade suppliers.
One-third of those staff were employed by the asset management business, which held a $35 million contract with the Department of Communities for the maintenance of 6,500 properties in the state’s north-west, a contract not due to expire for another year, as well as two other smaller maintenance contracts.
Administrators had continued the trading of Pindan Asset Management with a view to achieving a rapid business sale.
Business News is a registered creditor of Pindan in relation to a small advertising contract.