Creditors' concern at Rivet end

26th July 2017 8:16 AM
UNCERTAIN FUTURE: Rivet group has made the decision to move Australian Road Express and Rivet Mining East into administration, leaving creditors with questions. UNCERTAIN FUTURE: Rivet group has made the decision to move Australian Road Express and Rivet Mining East into administration, leaving creditors with questions. Bruce Honeywill

AUSTRALIAN mining and transport group Rivet, the reincarnation of McAleese, has placed a number of businesses into administration just months after their establishment.

Australian Road Express and Rivet Mining Services East, which collectively employs more than 200 people across Australia, were put on notice, with receivers McGrathNicol entering on July 17.

However, 48 hours after the company announced to the press it was going into receivership, some creditors were yet to be contacted and had not received formal notification by the time of publication four days later.

One creditor who had also experienced the McAleese downfall said there was a sense of dejavu.

"We lost a lot when McAleese went under but were given guarantees to cover what was lost prior," he said, not wanting to be named.

"We found out on Monday night from another transport company, but that was it, we haven't had any contact otherwise.

"It is frustrating a mining conglomerate worth millions carves out a loss and cuts people loose.

"No one wants to be burnt twice, it hurts, but we are lucky to be big enough to trade through this.

"It is more devastating for the blokes running across the ditch relying on the pay who still haven't even got their group certificates."

 

Gladstone office - McAlees transport has gone into voluntary administration.  Photo Mike Richards / The Observer
McAleese transport had gone into voluntary administration last year before evolving into Rivet. Mike Richards GLA290816TRAN

Another creditor Big Rigs contacted suggested the delay in notification was to ensure deliveries were done before people realised they might not be paid.

Contacts have also described locked gates with security guards positioned at the Perth head office.

Australian Road Express has about 180 employees, with headquarters in Perth and depots in Adelaide, Melbourne, Sydney and Brisbane.

The Rivet Mining Services East Group employees 70 people and has heavy haulage and crane depots based in Newcastle, Rockhampton and Emerald.

The business, which has a fleet of more than 250 trucks, trailers and cranes, provides lifting and haulage solutions primarily to the mining, energy and infrastructure industries.

The appointment does not impact the broader Rivet Group.

Receiver group BRI Ferrier did not return calls for comment.