Former Griffin contractor goes into administration

Carna Group has been placed into administration after revealing it is fighting the owners of the Griffin coal mine for payment for work done prior to walking off the Collie mine last year.

Carna Group’s directors have appointed Ian Francis and Michael Ryan of FTI Consulting as Voluntary Administrators of the company.

They said the appointment came as Carna continues to deal with the impact of the Griffin coal mine contract.

Carna terminated arrangements with the owner of the Griffin Coal Mine, Lanco Infratech, on December 3 2014 following non-receipt of contracted payments. 

Carna has subsequently lodged a civil claim against Lanco Infratech seeking payment for work performed and additional damages.

Carna is a family owned business established in 1992, when managing director Harry Carna, started contracting work with a single 623B Scraper. 

Carna has now been involved in over 250 projects across Western Australia, expanding from sub-divisions into plant hire, mining operations and civil construction works. 

The business currently has over 150 pieces of equipment.  There are currently 119 employees of Carna. 

Carna will seek the support of all stakeholders, including Creditors and Employees, to continue to trade under the control of the Voluntary Administrators.

Mr Carna, said the appointment of Voluntary Administrators to assist in dealing with the Griffin Coal impact was a difficult but necessary decision.

“This is not a decision we have taken lightly, but given the impact of the Griffin Coal Mine contract and subsequent disputes, the reality is this was a decision we had to take to protect the future of the business,” Mr Carna said.

FTI Consulting senior managing director Ian Francis said detailed discussions would be held with all stakeholders in the coming weeks.

“Carna is a business with a substantial successful operational history that has been impacted significantly by a single contract.  In the period ahead we will seek to preserve as much of this value as possible,” Mr Francis said.