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“RCR Tomlinson owes up to $630m, administrators from McGrathNicol tell creditors
Peter WilliamsThe West Australian
Monday, 3 December 2018 1:13PM
Failed engineering company RCR Tomlinson owes creditors about half a billion dollars, according to administrators.
The administrators from McGrathNicol told a packed creditor meeting today that the contractor’s debt ranged from $480 million to $630 million.
That included about 4000 unsecured creditors owed between $100 million and $250 million.
Five secured creditors are owed $235 million, three unsecured bondholders $113 million and RCR’s 2800 employees $32 million.
About 250 creditors attended the Perth venue of the meeting, which was held across four cities. There were more than 100 in Sydney and about 60 in Melbourne.
The administrators are targeting deals by Christmas to sell RCR’s businesses, excluding the solar energy construction arm which is being wound up.
Meeting chairman Jason Preston said about 200 parties had shown interest. Non-binding expressions of interest are due to close on December 10.
He said administrators were trying to move the process as quickly as they could so the RCR businesses could pursue new contracts.
The meeting was told about 200 employees had been made redundant.
RCR’s board called in administrators on November 21 after bankers refused to lend the struggling company more funds to service its contracts.
The collapse came in the wake of a $57 million loss on a Queensland solar project and despite the company raising $100 million from investors.
Mr Preston said cost overruns and working capital requirements for solar projects had consumed significant amounts of cash very quickly.
He said fixed-price engineering, procurement and construction contracts were risky in that the contractor was fully exposed to both cost blowouts and liquidated damages if the project was delayed.
Renewable energy project developer Bright Energy Investments on Friday terminated RCR’s contract to build a $60 million expansion of the Greenough River solar farm in the Mid West.”
https://thewest.com.au/business/ene...om-mcgrathnicol-tell-creditors-ng-b881038034z
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