Heavy Haulage Australia, a McAleese Group subsidiary, has entered into administration, and McAleese is seeking recompense.
The group’s operations have been under review since early May due to “sustained poor market conditions in the oil and gas and infrastructure sectors, and HHA Group’s inability to support the high fixed costs of its lease arrangements,” McAleese said in a company statement.
As a result of the business folding, McAleese is forecasting a one off impairment of around $17 million, relating to loans, accrued interest, and other receivables payable to HHA, after which “the company does not consider that it has any further financial exposure relating to its investment in HHA Group”.
Due to HHA’s current financial situation, McAleese is pulling capital support and “considering its options for legal recourse against the vendor of McAleese’s shareholding in HHA Group, in connection with the sale process and conduct after that time,” it said.
Despite shutting down its stake in HHA, MCAleese said it is still committed to the heavy haulage market through its own heavy haulage and lifting division, comprising McAleese Transport and Walter Wright Cranes.