Creditors of WBHO Infrastructure will decide next week if they accept a bid by SRG Global to buy the collapsed company, with administrators warning the alternative is liquidation.
Creditors of WBHO Infrastructure will decide next week if they accept a bid by SRG Global to buy the collapsed company, with administrators warning the alternative is liquidation.
Business News reported in late February that West Perth-based WBHO Infrastructure and its almost 300 employees were caught up in the administration of WBHO Australia and Probuild, with Deloitte partners appointed to run the companies.
See more: Owners had promised to back WBHO Infrastructure
ASX-listed SRG Global announced in mid-March it had agreed to buy WBHO Infrastructure for $15 million, while it was later revealed there had been 23 parties which had shown an interest in a potential purchase deal.
SRG will also buy Carr Civil Contracting, another entity in the WBHO business.
Creditors will vote on the deal on 30 March, the administrators said today.
Administrators said it would be in the best interest of creditors to accept the deal, with a majority of employees to stay on.
If the deal was not approved, administrators had the power to sell the entities anyway, although that option would lead to job terminations and a lower return for creditors.
The only other option was liquidation.
The deal would provide a swift exit from administration and provide certainty about its future, the administrators said, although it was unclear exactly how much creditors would recieve as contingent claims still needed to be clarified.
Deloitte transformation and restructuring partner Matthew Donnelly said the sale was compelling, and an excellent outcome in the circumstances.
"SRG is a well-established industry player, and the sale provides the highest and best value proposition for creditors based on the offers received, retains jobs and entitlements for the Western Australian employees, and provides certainty for WBHOI’s suppliers and customers,” Mr Donnelly said.
