LESS than a week after the company was put into receivership, Environmental Solutions International’s directors have appointed Pitcher Partners pair Bryan Hughes and Vincent Smith as administrators.
On November 17, ESI financier the Commonwealth Bank appointed McGrath Nichols as receiver manager.
McGrath Nichols remains in control of the day-to-day running of ESI.
According to an announcement released to the Australian Stock Exchange, the Commonwealth Bank appointed the receiver manager after Canadian company Zenon backed out of its agreement to take shares in ESI.
Zenon had agreed to take 35 million ESI shares. That would have raised $2.6 million for ESI.
However, Zenon’s withdrawal was sparked by a Victorian adjudicator’s decision that ESI should pay about $1.4 million of a $2.2 million claim from Belmadar Constructions.
The claim relates to a dispute about works carried out on the Mildura West Water Treatment Plant contract.
ESI has also lodged a claim for liquidated damages against Belmadar for up to $475,000.