McAleese have managed to secure a refinance deal.
McAleese have managed to secure a refinance deal. Scott Newton

Is this the end for McAleese?

  • McAleese has gone into voluntary administration.
  • The struggling company was not able to go ahead with it's recapitalisation deal as a condition was not met or waived by financiers.
  • Because of this condition the Group's debt and interest has become immediately due.
  • Administrators are working with financiers to try and get a short term funding solution.

THIS morning McGrathNicol announced Joseph Hayes, Jason Preston, Jamie Harris and Keith Crawford were appointed Voluntary Administrators of McAleese Limited and each of its wholly owned subsidiaries with the exception of Sunshine Refuellers.

In June this year the McAleese Group entered into a binding agreement with its financiers in relation to a proposed recapitalisation, the objective of which was to create a sustainable capital structure for the McAleese Group.

Read the story about the refinancing deal here

The deal was subject to two conditions being satisfied or waived prior to the expiration of forbearance arrangements extended by the McAleese Group's financiers.

Now administrators have been advised that one of those conditions was not met or waived by the financiers.

As a result the McAleese Group's uncompromising senior debt and accrued interest became immediately due and payable.

The Group's financiers declined to enter into any new arrangement which would put off the business going into administration.

Earlier this month McAleese's CFO resigned, see the story here

Because of this directors formed the view that the group is either insolvent or likely to become insolvent and resolved to appoint the McGrathNicol as administrators.

Administrators understand that parties to the proposed recapitalisation are bound to implement an alternative transaction which reflects the proposed recapitalisation.

Administrators intend to continue to operator all four business units in the short-term while they undertake an urgent financial and operational assessment on a business-by-business basis.

The objective is to work closely with management, employees, suppliers and customers to keep operation running as smoothly as possible.

They are now looking to secure short term funding from financiers to provide working capital so administrators can continue to trade.

Administrators will also continue with the Cootes Transport sale which started before their appointment.

Heavy Haulage Australia was purchased by McAleese in November of 2014 and seven months later the business went into administration before folding. Read the story here.