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Released March 18, 2014 | PERTH, AUSTRALIA
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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 issues with the construction of Rio Tinto Limited's (Victoria, Australia) West Angelas project, and the AGL Energy Limited (North Sydney, Australia) and APA Group (Sydney, Australia) consortium's Diamantina project in Western Queensland, which resulted in huge losses for the company.
The collapse of Forge comes despite it having $1.5 billion in future projects scheduled, of which $600 million would have been completed. The company's fall led to 1,400 job losses and has left the employees in limbo, as they are not eligible to apply to the federal government to secure wages and entitlements, as the company has not yet confirmed official liquidation.
Several companies, which appointed Forge as an engineering, procurement and construction (EPC) contractor, or major contractor, are looking for new contractors. Samsung C&T Australia (Perth, Australia) and Metals & Minerals Group Limited (Melbourne, Australia) took over the contract to build the massive Roy Hill and Dugald River Mine projects, respectively.
Forge is still involved with some of the committed projects, which are at the most advanced stages and nearing completion or are under construction in Australia. The much-discussed West Angelas Power Project is under final the commissioning phase, and Forge employees are still working on the project. Likewise, Forge is working on the previously committed South Hedland power project, which is also nearing completion.
View Plant Profile - 3009352 1090445 3049771 3037958
View Project Report - 300015195 300062139 300047079 300134237
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
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 issues with the construction of Rio Tinto Limited's (Victoria, Australia) West Angelas project, and the AGL Energy Limited (North Sydney, Australia) and APA Group (Sydney, Australia) consortium's Diamantina project in Western Queensland, which resulted in huge losses for the company.
The collapse of Forge comes despite it having $1.5 billion in future projects scheduled, of which $600 million would have been completed. The company's fall led to 1,400 job losses and has left the employees in limbo, as they are not eligible to apply to the federal government to secure wages and entitlements, as the company has not yet confirmed official liquidation.
Several companies, which appointed Forge as an engineering, procurement and construction (EPC) contractor, or major contractor, are looking for new contractors. Samsung C&T Australia (Perth, Australia) and Metals & Minerals Group Limited (Melbourne, Australia) took over the contract to build the massive Roy Hill and Dugald River Mine projects, respectively.
Forge is still involved with some of the committed projects, which are at the most advanced stages and nearing completion or are under construction in Australia. The much-discussed West Angelas Power Project is under final the commissioning phase, and Forge employees are still working on the project. Likewise, Forge is working on the previously committed South Hedland power project, which is also nearing completion.
View Plant Profile - 3009352 1090445 3049771 3037958
View Project Report - 300015195 300062139 300047079 300134237
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
