Pierce Engineering to trade on after creditors accept proposal
LONG-STANDING Rockhampton firm Pierce Engineering will trade on, after a second meeting of creditors accepted a directors’ proposal to avoid liquidation.
The outcome of Thursday’s meeting was good news for about 40 of the company’s employees during uncertain economic times brought on by the coronavirus pandemic.
In February the directors of Pierce Engineering, a North Rockhampton-based business with a 50-year trading history, placed it into voluntary administration.
That came on the back of the company suffering a financial hit from the failure of the JMK group of companies and subsequently receiving a preference claim demand for about $430,000 from the liquidator of the JMK group of companies.
On February 27, Morgan Lane of Worrells Solvency and Forensic Accountants, was appointed as voluntary administrator to Pierce Engineering and since then Worrells has continued to trade the company’s business over the administration period while retaining almost all employees.
Local Worrells partner Michael Beck was pleased with the outcome of Thursday’s meeting which allows the business to trade on.
“It’s a great outcome that allows the business to continue trading and provide employment to approximately 40 staff in times of such uncertainty given the COVID-19 crisis,” Mr Beck said.
“We would like to thank both staff and suppliers for the support over the administration period which is reflective of the history and good reputation of the directors and the business.
“It’s now business as usual for the directors and we’re hopeful that customers, government and the community will continue to support such a long-standing local business.”
Mr Beck said there were obviously a number of businesses struggling given the current coronavirus crisis but it was important to realise there were options available.
“Sticking their head in the sand should not be one of those options.
“Taking action early might be the difference between saving a business or at least minimising the loss.”
Worrells has 34 offices nationally and 29 partners across Australia.
It has been providing solvency management, insolvency administration, and forensic investigation services for more than 45 years.