HHA Group winds up

Unstable iron ore prices have scared investors away from the troubled HHA Group, resulting in job losses for 70 employees.

Half owned by McAleese Group, Heavy Haulage Australia was placed into administration last month, and will now be wound up.

SMH reported that two serious bidders were in the running to take over the business as recently as last week, however the sudden plunge in the price of iron ore to the low US$40s caused interest to evaporate.

A third potential deal fell through on Friday, according to administrator Ferrier Hodgeson.

A private sale of HHA’s assets will see more than 50 prime movers, 120 haulage trailers, 15 cranes and 40 light commercial vehicles presented to the commercial market.

McAleese is expected to write-down impairments of $17 million against their investments in HHA Group, which were made only eight months ago.

HHA Group owes creditors more than $60 million, however McAleese said these debts were non-recourse and that they had no financial exposure other than $17 million.

McAleese has lost 93 per cent of its value since listing on the ASX in November 2013.

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