21/05/2021 - 15:20

State releases funds for Pindan

21/05/2021 - 15:20

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The state government has today released funding to facilitate the operation of the asset management arm of Pindan Group, with interest from parties hoping to restructure the business.

Photo: David Henry

The state government has today released funding to facilitate the operation of the asset management arm of embattled construction company Pindan Group, with EY confirming it had received significant interest from parties hoping to restructure the business.

In a statement to Business News this afternoon, a spokesperson from EY confirmed administrators had sourced further funding to continue operating the Pindan Asset Management business short term.

It is understood discussions with the government over long-term funding solutions will continue over the course of the next week, with significant interest from parties looking to acquire or restructure the asset management section of the business.

EY confirmed it was continuing through the contract review process to determine a position on each contract and indicated that it was likely to communicate with project owners in the coming days.

A further 27 staff were let go yesterday from the projects, developments, realty, construction, contracting and administration divisions.

The move comes just days after EY was forced to lay off 135 staff in its first 24 hours as administrators.

Administrators had been working to secure funding in a bid to keep staff and subcontractors in work, with 68 active projects, 280 staff and hundreds of subcontractors and trade suppliers affected.

The first meeting of creditors is due to be held at 11am next Friday, May 28.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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