Major builder Clough into administration

December 06, 2022 02:20 PM AEDT | By AAPNEWS

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Engineering and construction group Clough has entered voluntary administration, casting uncertainty over several major Australian projects.

It comes after a proposed sale to Italian giant Webuild collapsed, leaving the Clough board with "no choice" but to call in administrators from Deloitte.

Clough's projects include the nation's largest pumped hydro project, Snowy 2.0. It is also the builder of the Waitsia gas project in Western Australia's midwest and has other contracts across Australia and the world.

The Perth-based contractor has about 1250 staff in Australia and a further 1250 elsewhere.

Clough's parent company Murray & Roberts told the South African stock exchange it had been forced to act after Webuild pulled out of the purchase deal which would have included a $30 million funding injection.

"In the absence of the interim loan ... the board of directors of Clough have been left with no choice but to place Clough and its subsidiaries under voluntary administration in Australia with immediate effect," the statement read.

Administrators will examine options including a sale or restructure of the company or a compromise arrangement with creditors.

Clough had previously flagged it needed working capital after cost overruns on projects including Waitsia, a joint venture between Beach Energy and Mitsui.

Beach Energy told the market it would work with the administrators and contractors to ensure continued progress of the gas plant.

"Beach has been working with Mitsui in planning for various outcomes and will continue to work to deliver the best outcome for the project," the company said in an ASX announcement.

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