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Researched by Industrial Info Resources Australia (perth, Australia)–Mining contractor Forge Group Limited (ASX:FGE) (Perth, Australia) has entered voluntary administration, following the withdrawal of financial support by ANZ Bank and other group financers. Forge Group had announced a trading halt in February, and it appointed KordaMentha Pty Limited (Perth, Australia) as receiver and manager to handle the financial operations of the company, in cooperation with joint and several administrators.
Last month’s action followed weeks of trading halts and an estimated $20 million loss before taxes for the fiscal period ending June 30, 2014. As per the latest reports, Forge currently holds more than $700 million in debts, pushing the company to undergo major restructuring or official liquidation, which will be confirmed by the end of March.
According to former Chief Executive Officer David Simpson, Forge’s collapse was linked to cost overruns associated with the construction of two large power station projects of wholly owned subsidiary Forge Group Power Pty Limited. Forge Group had faced several…