Liam Bellamy, a Founding Partner of RRI, was entrusted with the role of Administrator for a prominent Crane Company in Victoria. The company specialises in Mobile Crane and Crane Labour Hire Services within Victoria and is a critical player in the region’s industrial landscape.

The Crane Company had encountered financial distress, necessitating swift and strategic action. With the company at a crossroads, facing the prospect of closure or the potential for a sale or recapitalisation, we implemented the following strategies: 

Continuation of Business Operations: We recognised the importance of business continuity. The company’s operations could continue during the administration period to facilitate the exploration of potential sale or recapitalisation.

Legal Measures: Understanding the situation’s complexities, an application was submitted to the Court. This application sought an extension of the convening period for the second meeting of creditors, allowing more time to navigate the financial challenges.

Sales Efforts: The business was advertised for sale to explore external options. Despite marketing efforts, no viable offers were received.

Collaborative DOCA Formation: We collaborated closely with a director of the business to craft a Deed of Company Arrangement (DOCA). This DOCA was designed to provide a structured and viable solution for the company’s financial struggles.

RRI was instrumental in delivering several significant achievements:

Employee Support: The support and backing of the CFMEU (Construction, Forestry, Maritime, Mining and Energy Union) and the company’s employees played a pivotal role. Their support was instrumental in approving the proposed DOCA during the creditors’ meeting.

DOCA Benefits: The approved DOCA provided several critical benefits, including preserving employment for approximately 100 employees, the continuity of existing contracts, and a structured payment plan. Over three years, the company committed to pay $5 million from its ongoing operations to benefit its creditors.

Expected Dividend: The DOCA is expected to result in a dividend of approximately 30 cents on the dollar for the company’s creditors.

A viable solution was achieved by engaging stakeholders, administrators, and employees, securing jobs and maximising returns to creditors while ensuring the company’s continued operations. Through the power of collaborative and strategic decision-making, we were able to leverage innovative approaches and legal measures in addressing some very complex financial challenges.

Want to learn more about how Liam and RRI can help you successfully turn around a business facing financial trouble?

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This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to RRI Advisory’s clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.