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Home > Gavin closure caps horror month for insolvencies
Gavin closure caps horror month for insolvencies
Dan Wilkie and Saskia Pickles
28-Jun-2013
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Perth builder Gavin Construction has officially ceased trading, capping off a horror
month during which six significant Western Australian businesses in contracting,
engineering and mining have fallen into administration or receivership.
Gavin Construction appointed administrators earlier this week and closed its doors
as of 12pm yesterday.
It is understood the company could be owed up to $2 million as a result of the
collapse of one of its clients in Karratha.
It followed gold miner Apex Minerals, engineering company Allmine Group,
hydraulics technology provider Pressure Dynamics, contractor Drilling & Grouting
Services, and electrical contractor Global Electrotech, all of which have gone into
administration.
Global Electrotech is seeking a refinancing, the assets of Allmine Group, Drilling &
Grouting and Pressure Dynamics have been put up for sale, and the future of Apex
is unresolved.
Gavin administrator Chris Williamson of WA Insolvency Solutions halted work on a
dozen consruction projects this week, leading to the loss of about 35 jobs.
The company's major project was a $40 million health centre and library at
Cockburn.
It's believed the collapse of the MCM Linen business in Karratha was the main
contributor to Gavin going into administration after 44 years of trading.
Earlier thi week, Apex Minerals was placed into receivership by creditor RF Capital,
following the business's failed attempt to raise $1 million to repair a generator at its
Wiluna mine.
Ferrier Hodgson is the receiver for Apex, whose shares have remained at $0.01
since it halted trading on June 24 as it attempted to complete finance arrangements.
Apex had previously unsuccessfully tried to sell the Wiluna mine to Chinese investor
Everprosperity for $50 million.
Allmine Group, which is the parent company of Perth business Arccon, construction
services business Construction Industries Australia, and plant maintenance business
Allmine Maintenance, was placed into administration on June 21 shortly after new
management was announced.
Allmine Group receivers Korda Mentha has advertised the sale of the group, asking
for expressions of interest for the separate businesses or assets either individually or
together.
The directors of hydraulic technology company Pressure Dynamics appointed Grant
Thornton as administrators, after a period of rapid growth and increased costs was
met with a downturn in the mining and petroleum sector, which it services.
Receivers PPB Advisory is looking to sell the business.
Ferrier Hodgson is the administrator of Drilling & Grouting Services (DGS).
Ferrier is seeking expressions of interest to take part in a financial restructure of
DGS or to buy the drilling business' assets, either in part or entirely.
DGS operates out of a leased two-hectare plot in Welshpool, where it has a
workshop, depot, plant and equipment, and an office.
An undated online directory listing says DGS has 83 employees.
Neither Ferrier Hodgson nor DGS responded to Business News's requests for
comment before deadline, but Ferrier Hodgson has advertised that expressions of
interest for DGS close on July 5.
Electrical fire and security contractor Global Electrotech is continuing to trade and
trying to refinance after going into voluntary administration on June 14.
Global Electrotech is using WA Insolvency Solutions as its voluntary administrator
and Ernst & Young as its receiver.
The business expanded rapidly from two founding directors in 2000 to 138
employees on the back of winning several contracts.
Ernst & Young restructuring leader Vince Smith said Global Electrotech's pace of
expansion played a major part in it going into voluntary administration.
"Certainly they expanded at a speed beyond their ability to fund it and raise working
capital. That has been a significant contributor. They had one particular contract
where they had difficulties, which impacted on their working capital," he said.
Global Electrotech told Business News in its application for a Rising Star award,
which it won this year, that cash flow had sometimes been a problem for the
company due to rapid growth but management said "there has always been one
answer, 'If it is required, we will make it happen".
It won several contracts in recent years including the installation of the fire and
emergency warning systems at the University of Western Australia in 2008, and fire
services contracts for the North Metropolitan Health Service and the Defence Force
of Western Australia in 2012.
These contracts helped the business grow its largest division, service and
maintenance, to more than 1,000 clients and operate 24 hours a day.
Recent projects completed by Global Electrotech included services for three
accommodation camps for Fortescue Metals Group as a subcontractor for Pindan
and Decmil Group.
In April this year it moved into a new modern 6,000 square metre premises in
Balcatta to accommodate its growing business.
Mr Smith said there were no current plans for staff redundancies or termination of
contracts and that Ernst & Young and WA Insolvency Solutions were working with
the directors to put in place a refinancing proposal.
"Should that be successful, we'll be retiring as receivers of the company and the
administration will then work with the balance of the creditors," he said.
Mr Smith said he was hopeful the company could refinance successfully and
continue to operate.
Category:
Building & Construction [2]
Tags:
Gavin Construction [3]
Apex Minerals [4]
Allmine Group [5]
Pressure Dynamics [6]
Drilling & Grouting Services [7]
Global Electrotech [8]
Arccon [9]
Grant Thornton [10]
PPB Advisory [11]
KordaMentha [12]
Ferrier Hodgson [13]
WA Insolvency Solutions [14]
Ernst & Young [15]
University of Western Australia [16]
Fortescue Metal Group [17]
Pindan [18]
Decmil Group [19]
Source URL: http://www.businessnews.com.au/article/Gavin-closure-caps-horrormonth-for-insolvencies
Links:
[1] http://www.businessnews.com.au/print/article/Gavin-closure-caps-horror-monthfor-insolvencies
[2] http://www.businessnews.com.au/Category/Building-Construction
[3] http://www.businessnews.com.au/Company/Gavin-Construction
[4] http://www.businessnews.com.au/Company/Apex-Minerals
[5] http://www.businessnews.com.au/Company/Allmine-Group
[6] http://www.businessnews.com.au/Company/Pressure-Dynamics
[7] http://www.businessnews.com.au/Company/Drilling-Grouting-Services
[8] http://www.businessnews.com.au/Company/Global-Electrotech
[9] http://www.businessnews.com.au/Company/Arccon
[10] http://www.businessnews.com.au/Company/Grant-Thornton
[11] http://www.businessnews.com.au/Company/PPB-Advisory
[12] http://www.businessnews.com.au/Company/KordaMentha
[13] http://www.businessnews.com.au/Company/Ferrier-Hodgson
[14] http://www.businessnews.com.au/Company/WA-Insolvency-Solutions
[15] http://www.businessnews.com.au/Company/Ernst-Young
[16] http://www.businessnews.com.au/Company/University-of-Western-Australia
[17] http://www.businessnews.com.au/Company/Fortescue-Metal-Group
[18] http://www.businessnews.com.au/Company/Pindan
[19] http://www.businessnews.com.au/Company/Decmil-Group