• RCR owes $630m to creditors
RCR owes $630m to creditors
05 Dec, 2018, 1 Comment

Summary: Collapsed engineering firm RCR Tomlinson owes up to $630 million to creditors including subcontractors working on two solar farms in Queensland.....

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Creditors of the company met yesterday in a series of meetings around the country to discuss a possible sale of RCR and its assets by administrator McGrathNicol.


RCR, which was also involved in rail, oil and gas and power generation, owes 4000 subcontractors and other suppliers about $250 million.


Australian Subcontractors Association director Louise Stewart said she was concerned that Queensland subbies had left on site heavy equipment over which they had not registered a security interest.



RCR was the engineering, procurement and construction contractor to Pacific Hydro’s $200m Haughton solar farm near Clare, south of Townsville, as well as the Darling Downs Solar Farm for APA Group.


Ms Stewart said another concern was the large amount of money owed to RCR from project developers for work completed. She said this money should be placed in a special trust account to pay subbies.


Creditors were seeking clarity on a number of actions by the company before it collapsed, including a $100m fund raising. “They knew they were in trouble,” she said. “In Queensland, subcontractors working on the company’s solar farm projects typically faced three months of non-payment (before the company went into administration).”


McGrathNicol partner Jason Preston said the priority was to prepare the business for sale to bring certainty to employees, customers and suppliers.


 

Glen Norris, 3/12/2018, www.theaustralian.com.au/business/rcr-owes-630m-to-creditors/news-story/56d7796ecc9b933d25ce5cc2e0b62dc5

Comments.
  • MyPassion

    Wayne skeen
    07 Dec, 2018

    Asked the Haden company rep 8 years ago,'have you seen a business plan,because current model not feasible'. No, was reply. RCR purchase was suicide pact. 'Quote'

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