RCR Tomlinson Held Its First Meetings Of Creditors

  • Dec 04, 2018 AEDT
  • Team Kalkine
RCR Tomlinson Held Its First Meetings Of Creditors

On 14 November 2018, the securities of Diversified engineering and infrastructure company RCR Tomlinson (ASX: RCR) were suspended from the official quotation on ASX.  Later the voluntary suspension of the Company’s shares was extended by ASX on the request of RCR. After that, RCR Tomlinson Limited made an announcement on 22 November 2018 stating that it has appointed Jason Preston, Jamie Harris, Matthew Caddy and Rob Brauer of McGrathNicol as administrators to the company and this will be offering the company’s business for sale in order to attract the widest range of interest.

In the first meeting of RCR Tomlinson’s Creditors which was held on 3 December 2018, the company informed that the Administrators of the company are continuing to trade the businesses as usual (other than solar) and they are offering it for sale as a going concern in order to attract the widest range of interest. With regards to the sale of the business, the company has also put an advertisement in the Newspaper on 26 November 2018. Till now more than 200 parties have contacted the Administrators expressing their interest for the purchase of company’s business.

The administrators of the company will provide an update on the sale process by 24 December 2018, following a period of due diligence and receipt of offers. The company has informed that it is too early to form conclusive views on the potential return to unsecured creditors. In accordance with the Corporation Act, the company has put different classes of creditors in an order of priority. The Employees of the company are first in the priority list, followed by Secured creditors and then unsecured creditors. The shareholders of the company are last in the order.

Taking into the consideration the creditor profile of the business, the company will require strong offers to pay all its creditors. RCR Group is having around 2,800 employees and the company’s administrators are responsible for all wages and entitlements accrued post-appointment. The administrators will pay the wages and entitlements from funding which will be obtained from the sale and from trading surpluses. The pre-appointment entitlements of the company are currently estimated at approximately $32 million excluding redundancy provisions.

As a part of its going forward strategy, the company is planning to trade the viable components of the business while pursuing a sale of all or part of the business or its assets. The administrators of the company will investigate the reasons for the failure of the business and prepare a report to creditors providing creditors with the Administrators’ recommendation on the options available to vote at the second meetings of creditors.

As per the proforma FY 2018 results, the company reported a net loss of $29.9 million. At the end of FY 2018, the company was having total net assets of $408.6 million (proforma basis). Further, the net cash generated from operating activities was $47.5 million in FY 2018. RCR’s shares last traded at $0.870 on 9 November 2018.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK