Sharps Heavy Equipment Repairs has been saved
Sharps Heavy Equipment Repairs
Turnaround a textbook case for voluntary administration
27 July 2015: Queensland-based mining services operator Sharps Heavy Equipment Repairs Pty Ltd is back in the hands of its owner and director, completing a 12-month turnaround process that has seen more than 100 jobs retained.
Established in 1994 and based in Mackay, the business provides repair services to the heavy earthmoving and mining industries.
Deloitte Restructuring Services partner Richard Hughes was appointed Voluntary Administrator of Sharps on 30 April 2014. Creditors subsequently approved a binding deed of company arrangement (DOCA) in June 2014 that allowed for a 12-month turnaround process and saw approximately 31 cents in the dollar paid to unsecured creditors.
At the same time, Hughes was appointed Deed Administrator to represent the interests of creditors during the DOCA period. His role ended on 13 July 2015 as the DOCA has now been finalised.
Hughes said that Sharps was well-positioned for a strong future: “This is the best possible outcome for all parties in what remains a very challenging industry.
“Mining services operators have had to undertake serious adjustments as their client base looks to drive greater efficiencies, productivity and lower costs. Some have been able to change in the face of changing market dynamics and, via the Voluntary Administration process, Sharps is one of them.
“Certainly with the support of creditors, Sharps’ director Graham Sharp, his management team and employees have worked tirelessly with us to restructure the business and turn it into a leaner and more competitive operation.
“Management identified that early intervention was required to help them respond to industry pressures and the ultimate outcome is a successful turnaround, continuing employment for more than 100 people, ongoing trading for creditors and other suppliers, and a business in a good financial position, looking to grow and continue to contribute to the Mackay and Queensland economies.”
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