4 more Mackay business in doubt.
ADMINISTRATORS called in to find a way forward for troubled driller
Wednesday 28 September 2016
The future for Mackay employees of Hughes Drilling, Express Hydraulics and Hughes Equipment Hire, hangs in the balance today following a decision by directors of parent company Hughes Drilling Pty Ltd to call in Administrators.
The decision also threatens jobs in Collinsville, Moranbah and Blackwater where another Hughes drilling subsidiary - Hyd-Elec Australia - operates.
Administrators McGrathNicol will keep the businesses open while they undertake an "urgent financial and operational” assessment before the first creditors meeting early next week.
At that meeting, administrators will make a decision as to whether the business can trade it’s way out of trouble to repay its creditors or whether it should be closed down altogether and its assets sold off.
The development is not altogether surprising, given trading in the company's shares have been on hold since June, while it explored various options to refinance its debt with its major lender and the ATO.According to the Hughes Drilling website they are Australia’s largest coal production and delineation drilling specialist with a client base consisting of Australia’s major mine operators and owners.