26/06/2001 - 22:00

Projects on hold hurt contractor

26/06/2001 - 22:00

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BUILDING contractor K Mountain this week announced it had entered into voluntary administration after a number of projects it was involved in were put on hold.

BUILDING contractor K Mountain this week announced it had entered into voluntary administration after a number of projects it was involved in were put on hold.

Ron Gamble, of BDO Chartered Accountants and Advisers, has been appointed administrator and said the flow-on effects of the Gallop Government’s planned 50-50 Fuel Entitlement Legislation had led to K Mountain placing itself into administration.

Mr Gamble said K Mountain was to be involved in construction and refurbishment of a number of sites owned by major oil companies.

But the legislation, which is set to be debated in the upper house next week, has led to a great deal of uncertainty among oil companies, which sub-sequently have put all construction and refurbish-ment works on hold.

While the legislation was not sole cause, Mr Gamble said it was a contributing factor.

He said K Mountain would continue to trade while he examined the company’s affairs.

Mr Gamble has been advised by K Mountain that a proposal will be made to creditors in the next few weeks whereby the company will be restruc-tured and will continue to trade.

Company clients have indicated support for K Mountain to continue with existing contracts.

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