Administrator takes over
Saturday, 10th January, 2015
Macquarie Drilling Pty Ltd has gone into voluntary administration, however the local impact of the decision won’t be known for another month.
The Sydney-based coal and mineral drilling business was founded in 1994 and has operations in NSW (St Marys, Branxton, Broken Hill), Victoria (Fosterville), Western Australia (Perth), Queensland (Caboolture) and South Australia (Adelaide).
The administration will be overseen by Neil Cussen and Vaughan Strawbridge of Deloitte Restructuring Partners.
Mr Cussen said that after a preliminary review of the Group’s financial position, it became apparent that there was insufficient cash to trade the business during the administration period.
“In order to preserve the business during the administration period to enable a possible restructure or sale, we licensed the business to a company controlled by director Michael Petrozzi, effective from the date of our appointment,” he said.
“This has ensured business continuity for customers and suppliers and provided for the redeployment of up to 80 employees to the licensee company for the duration of the administration.
“We are now focused on continuing investigations into the Group’s operations and financial position and considering options regarding the realisation of assets, including a possible sale of the business, in full or in part.”
An initial creditors meeting was held in Sydney yesterday, where the Administrators outlined their role and initial findings regarding the company’s financial position.
Simon Rushton of Deloitte’s Corporate Affairs and Communications said a second creditors meeting would be held before February 10, but until then the impact would be “basically nothing” in Broken Hill.
“There’s an emphasis on retaining staff and services ... for the time being everything is business as usual,” he said.