Contracting company Viento has entered voluntary administration amidst difficult market conditions.
The announcement comes despite a spree of recent contract wins, including a $7.3 million Rio Tinto contract and a $40 million contract at Fortescue and BC Iron’s JV.
However eyebrows were raised in the market last month with the appointment of Doug Grewar as new CEO, as part of the company’s new focus on ‘restructuring’.
According to the contractor “early discussions indicate the difficult trading conditions in the mining industry coupled with poor results from a HVLV project have led the board to resolve to appoint Voluntary Administrators”.
The business will continue to trade whilst it is working on a formal restructure of the group, which may include raising capital.
Around 250 people currently work for the company, with directors stating the restructure proposal will provide the best opportunity to preserve employment and maximise the return to creditors.