Engineering and infrastructure company RCR Tomlinson has gone into voluntary administration after being unable to secure additional funding after the company’s trading halt on November 12.
RCR went into a trading halt in July this year, after which its shares were reinstated to the Australian Stock Exchange on August 30.
The second trading halt announced earlier this month alarmed industry as evidence the company was in danger of going into receivership.
McGrathNicol Restructuring has announced that the directors of RCR and its Australian subsidiaries have appointed Jason Preston, Jamie Harris, Matthew Caddy and Rob Brauer as voluntary administrators.
In a statement to the ASX, McGrathNicol said the administrators are undertaking an assessment of the business and urgently seeking funding from RCR Group’s financiers.
Related article:Class action filed against RCR Tomlinson
“The administrators will work closely with RCR’s employees, suppliers and customers to quickly stabilise operations and to determine the appropriate strategy for the business,” the statement reads.
“A sale process will be commenced immediately.
“RCR suppliers are asked to ensure that they supply only in accordance with the circular to suppliers, available on the McGrathNicol and RCR websites.”
A class action against RCR was filed on November 16 in the Supreme Court of New South Wales on behalf of aggrieved shareholders.
The legal proceedings were filed by Quinn Emanuel, with partner at the firm Damian Scattini saying, “It’s unlikely that the recent alarming disclosures by the company could have come as a surprise to management – if the did, that’s worse”.
“RCR shareholders have seen a catastrophic decline in their share value,” he said.
According to the ABC, investors are stunned after raising $100 million in equity for RCR in August.
RCR reported earlier this year that it had experienced a $57 milion write-down on 150MW Daydream and the 50MW Hayman solar farms in North Queensland.
Related article:Union calls for commitments after RCR solar halt
A first statutory meeting of creditors will be held within eight business days after the administration begins, and is expected to take place on December 3.
RCR employs 3400 people in Australia and is one of the country’s oldest engineering companies.