Sharps Heavy Equipment Repairs

Media releases

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.”

Media Contact

Simon Rushton

Corporate Affairs & Communications
T: +61 2 9322 5562
M: +61 450 530 748
Email

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. Formore information, please visit Deloitte’s web site at www.deloitte.com.au.

Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2015 Deloitte Touche Tohmatsu

Did you find this useful?