Background
Wilmot Civil formerly Wilmot Pipelining was a privately owned civil engineering business servicing private and public organisations in Queensland and New South Wales. The business transformed ageing pipelines and infrastructure using customised no dig trenchless pipe relining technology. Key service lines included spiral wound lining, ultraviolet lining, ultraviolet manhole lining and pressure pipelining solutions.
The company encountered financial difficulty as a consequence of the lack of profitability due to incredibly tight margins from highly competitive tenders and the inadequate available working capital following large capital investments.
Investigating Accountants Report
Cathro & Partners were initially engaged to undertake an Investigating Accountants Report / Review of the financial position of the company on behalf of the Secured Creditor of the Company. The scope of the engagement was to undertake an investigation into the financial position of the company and prepare an Investigating Accountants Report as to the financial viability of the business. The investigation determined that the company was not financially viable without a significant injection of capital. When the secured creditor withdrew its financial support it was clear that the company was likely insolvent and the company needed to appoint an external administrator
How did we assist
Following our appointment as Voluntary Administrators, we undertook an urgent assessment of the financial position of the Company and commenced a limited trade on of the business whilst marketing the business assets for sale on an expression of interest basis.
The continued trading of the business preserved the value of the business assets whilst undertaking a marketing program nationally to realise the business assets which were ultimately sold at auction. During this period negotiations were also undertaken for a possible Deed of Company Arrangement, but unfortunately no DOCA was proposed. At the meeting of creditors, it was resolved by the company’s creditors to place the company into liquidation, to enable further investigations and for recovery actions to commence.
Outcome
The voluntary administration and liquidation have successfully realised the business assets. The Company is in the process of being wound up with investigations ongoing on various recovery actions including voidable transactions and unfair preference recoveries, seeking to realise adequate funds to enable a return to creditors.
