Strangely, that story last year in AFR ( 36613015 ) places RCR second behind CIMIC in terms of benefitting from the infrastructure boom!
“Ben Brownette, equities analyst at Northern Trust Capital Markets, says CIMIC is best-placed to benefit from billions of dollars of spending by federal and state governments, followed by engineering services group RCR Tomlinson. Lendlease and Downer EDI will also benefit, although they will need to team up with other companies to win big projects, Mr Brownette says.”
But how could that ever have been possible ?
I have been reading how several big international infrastructure companies offer funding deals to support their bids
(Here is the way it went in relation to Canberra Light Rail Project Stage One https://www.cimic.com.au/our-business/projects/canberra-light-rail-stage-one:
Cimic’s funding arm Pacific Partnerships “will invest in equity funding along with John Holland, Mitsubishi Corporation and Aberdeen Infrastructure Investments. Pacific Partnerships will also provide operations and maintenance services for 20 years, in partnership with John Holland and DB Engineering & Consulting...”
This makes me wonder how any local company stands even half a chance .
They are obliged to ally with international companies with plenty of money and a reputation for hostile takeovers who are prepared to cut prices to the bone and who want to take them down.
Does anyone know if Lendlease has a funding division?
RCR obviously didn’t.
What about Downer ?
So back to RCR:
I am curious about. who is going to pick up the pieces here.
Has it already been decided ?
RCR does have valuable arms to it’s business, even if the solar is a complete write off.
It was suspended and under close scrutiny for four weeks in August before the $100m capital raise.
SURELY everyone knew the financial situation by the end of that month?
It was reported Downer was doing due diligence with respect to a takeover !
But rather than call bankruptcy then, RCR bought six weeks with $100 million and during that time Deloitte scrutinised the books as well.
I agree with @stretchercase ....something is fishy .
We should not be in administration .
(I have also been reading about tax and payment avoidance by means of phoenixing.)
This theory is based on anger and ‘Birds of a feather’ ;
If Eve Skira was prepared to use her position of power to sell the water board out to RCR then Andrew Phipps - the recently resigned RCR CFO - is perfectly capable of selling RCR down the river to his old mates at UGL (now Cimic) or to whoever else.
And its a lot cheaper for whoever wants RCR’s useful businesses to buy the company out of liquidation than to take it as a going concern
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)