RCR secures last-gasp funding

The administrators in charge of RCR Tomlinson have secured funding to support the engineering contractor’s operations, and disclosed that more than 180 parties have expressed interest in the planned sale of its business.

McGrathNicol said it had appointed sale advisers Record Point to assist with the sale process following the strong level of interest.

“Our priority is to prepare the business for sale to bring certainty to employees, customers and suppliers,” McGrathNicol partner Jason Preston said.

“We acknowledge the assistance and hard work of RCR staff, who are working in difficult circumstances.

“We also acknowledge the support of customers who are continuing place orders and support the business.”

The amount of funding was not specified.

The first creditors meeting will be held on December 3.

RCR was placed into administration last week after failing to secure new funding.

The announcement followed a difficult few months, which included a major cost blowout at two solar projects.

RCR’s share price fell by more than 60 per cent in August following a cost blowout at two solar projects in northern Queensland, culminating in a shareholder class action.

The cost overruns included a $57 million write-down at one of its projects.

The contractor also announced a $16.1 million loss for the 2018 financial year and a $100 million capital raising to help cover the cost blowout.