Rivet Mining Services goes under

Receivers from FTI Consulting have been called in to manage Rivet Mining Services, the Perth-based subsidiary of contracting business Rivet Group. 

Chris Hill, Vaughan Strawbridge and Hayden White of FTI Consulting have been appointed receivers and managers of Rivet Mining Services effective today. 

Rivet Mining Services' main business is providing bulk haulage and ancillary onsite services to mining companies in Western Australia.

FTI's early stage assessment of RMS indidcated adverse economic factors including extreme weather events, project delays, labour shortages, and cost pressure had been the company's undoing. 

According to the Transport Workers' Union, its collapse is tipped to affect some 450 workers in WA. 

RMS' parent organisation Rivet Group will continue to trade as normal with the receivership only relating to the mining services subsidiary, according to FTI.

"All other entities of the Rivet Group will continue to trade in their usual manner and have the ongoing support of their senior secured lender to the group to do so to ensure that customers, suppliers and employees are not adversely impacted," FTI said. 

Transport and logistics provider Rivet Group was created in late 2016 via the recapitalisation of McAleese's business units.

FTI Consulting has also been appointed as receivers for Blondie Trading effective today.

A statement from FTI Consulting said the objective of Blondie's appointment was to take control of the group at a holding company level to ensure it was sufficiently capitalised and not adversely impacted by the insolvency of RMS.