June 30 - Heavy Haulage Australia (HHA) has been placed into voluntary administration.
McAleese Group, which owns 50 percent of HHA, said it had decided that further investment in the company was unlikely to deliver an acceptable financial return, and therefore it has withdrawn working capital support.
HHA's financial decline comes in light of sustained poor market conditions in the oil and gas and infrastructure sectors, said McAleese, as well as the group's inability to support the high fixed costs of its lease arrangements.
McAleese confirmed, however, that despite its withdrawal from HHA, it remains committed to the heavy haulage market through its wholly owned heavy haulage and lifting division, comprising McAleese Transport and Walter Wright Cranes - both of which are unaffected by the administration.
As a result of the situation, McAleese Group expects a one-off impairment of approximately AUD17 million (USD13 million) in its financial results for the year ending June 30, 2015, relating to loans, accrued interest and other receivables payable by HHA to the company.
John Lindholm, Brendan Richards and Tim Michael of Ferrier Hodgson have been appointed voluntary administrators of HHA, which is owned by Jon Kelly.