Engineering contractor RCR Tomlinson collapses, administrators from McGrathNicol appointed
Peter WilliamsThe West Australian
Thursday, 22 November 2018 9:05AM
Engineering company RCR Tomlinson has been put in the hands of administrators after failing to recover from a disastrous solar energy project.
A statement from RCR interim chief executive Bruce James this morning said administrators from McGrathNicol were appointed to the company and its subsidiaries late yesterday.
Mr James said directors took the step because the company had not be able to secure extra funding.
The Roderick Brown-chaired RCR has a significant presence in WA’s resources and infrastructure sectors, including a long-term service contract with the Water Corporation.
Former managing director Paul Dalgleish quit in August ahead of the contractor writing down $57million from its Daydream and Hayman solar farms contract in Queensland.
Mr Brown at the time said the losses on the $315 million contract had been caused by external delays, worse sub-surface ground conditions than allowed for in the tender estimate and poor weather.
He also said a large portion of the writedowns were discovered late because a small number of on-site staff had been bypassing project systems.
The company conducted a $100 million equity raising at a heavily discounted price of $1 a share which diluted existing shareholders.
Trading in the shares had been suspended since November 12 as management sought additional funding. They lasted traded at 87¢.
RCR’s WA projects include the $60 million Greenough River Solar Farm expansion in the Mid West.
RCR Price at posting:
87.0¢ Sentiment: Hold Disclosure: Held
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