Australia-based Management Resource Solutions, a mining service provider, says voluntary administrators have been appointed at five of its operating subsidiaries in relation to a debt facility it took on back in May.
Its subsidiaries – Holdings (MRS) Pty Ltd, MRS Services Group Pty Ltd, Bachmann Plant Hire Pty Ltd, MRS Property No 1 Pty Ltd and Management Resource Solutions Pty Ltd – have been affected by the move.
The appointment of voluntary administrators was made by Hermes Capital, a secured creditor that agreed to loan the company A$3.2 million ($2.2 million) back on May 1. This came after the company had acquired Alerion Consulting Ltd, a company focused on precision aerial mapping of open-pit mines and earthworks including volumetric calculations, railway maintenance, water erosion mapping and terrain modelling with full geo-referencing.
The A$3,2 million facility replaced the existing A1.5 million working capital facility provided by the vendors of Bachmann Plant Hire and a A$1.7 million BPH Rent to Buy facility. It saw the company pay out all the Bachmann Plant Hire acquisition vendor liabilities and all 19 pieces of equipment that were part of the ‘rent to buy’ facility.
MRS and its Australia financial advisers met with the voluntary administrators last week to ascertain their plans, with the administrators confirming it was “business as usual” for the operating companies, and that they had sufficient capital to trade the businesses while calling for options to recapitalise the businesses.
“The board of MRS has committed to the administrators to work with them to seek to bring about an end to the administration process as quickly as possible,” MRS said.
MRS is involved in plant hire, equipment repair, refurbishment and fabrication, mine rehabilitation, earthmoving, road construction and other support services to a wide base of private and public sector clients in Australia.
Back in July 2018, the company’s MRS Services Group secured a two-year contract (with an option for a one-year extension) at Glencore’s majority-owned Ravensworth coal mine in New South Wales. The scope of works included the provision of a turnkey solution for the rehabilitation works comprising of bulk push of overburden dumps using two Cat D11T dozers. This would see the MRS team deliver a final geo fluvial landform design for the operation.