Three Australian companies have collapsed within 24 hours amid a dire warning that the wave of insolvencies across the country could be worse than during the 2008 global financial crisis.
Transport company Rivet Mining Services, as well as two real estate companies run by Jean Nassif, entered administration.
Rivet Mining Services, headed by former Toll boss Mark Rowsthorn, was hit by severe weather, project delays, labor shortages and soaring costs that it was bankrupt.
Chris Hill, Vaughan Strobridge and Hayden White of FTI Consulting have been appointed receivers and managers for the business, which provides bulk transportation and on-site ancillary services to mining companies in Western Australia.
The action only relates to the mining services business and not the wider Rivet group.
Rivet Mining Services, headed by former Toll boss Mark Rowsthorn (pictured), has been hit by severe weather, project delays, labor shortages and soaring costs that has pushed it into bankruptcy.
“RMS is the only commercial entity subject to voluntary administrator appointment and none of the other Rivet Group companies have been affected,” FTI said.
The mining business was severely affected by several adverse economic factors including bad weather, project problems, difficulty in finding workers and cost pressures.
“Other group companies will continue to trade in the usual manner and will have the continued support of senior secured lenders to ensure customers, suppliers and employees are not adversely affected,” FTI said.
Mr. Hill, Mr. Strowbridge and Mr. White were also named recipients of Blondie Trading, the parent company of the Rivet Group.
“The purpose of the appointment to Blondie was to gain control of the group at the holding company level and ensure that it was not adversely affected by the bankruptcy of the mining business,” FTI said.
It comes after Scott Refrigerator Logistics – which are trucks for supermarkets including Coles’ – went into administration at the start of March with the loss of 1,500 jobs.
Elsewhere, Sydney property developer Jean Nassif (pictured) has seen his companies go into administration
About 1,200 of its 1,500 employees have already been laid off, while the company owes more than $100 million to its creditors.
The Sydney-based company is seeking to get out of costly leases for all its 24 warehouses, which means 114,000 pallets of frozen food must be moved.
Concerns have been raised that food could go to waste, leading to supply shortages across Woolworths, Coles, Aldi, IGA and Foodbank Australia.
Elsewhere, embattled Sydney property developer Jean Nassif has seen his companies go into administration.
KordaMentha insolvency firm will be the recipient.
More than half a billion dollars in frozen goods could be lost after the liquidation of a trucking company that supplied all of the major supermarkets.
Mr. Nassif is responsible for some of Sydney’s skyscrapers, including the Sky View apartment complex in the city’s Castle Hill suburb.
Tenants of the luxury building were prevented from moving into the 900-unit building when crackling marks were found in the basement of the building.
“The Castle Hill project is partially complete, with two residential towers occupied and three under construction,” said Korda-Mintha. news.com.au.
The recipients were advised to stop working on Castle Hill, while the site was secured, to ensure its safety.
They will work with creditors and stakeholders to define a strategy to enable the construction of the remaining three towers as quickly as possible.
Attorney Scott Taylor added that the bankruptcies may just be “the tip of the iceberg”.
“When you start to see global banks getting nervous or selling off or going bust, that’s a clear indication of broader uncertainty, with more to come.”