McAleese given $10M lifeline to save jobs
SECURE creditors of the McAleese Group have thrown the ailing transport company $10 million to save jobs.
On December 19, the second meeting of creditors, there was a vote to accept the Deed of Company Arrangement that would see the company continue to operate with a $10 million lifeline.
Accord to a statement from receivers McGrathNicol the objectives of the cash injection was to help creditors get better returns, keep the group of companies operating, retain jobs and ensure funds were distributed effectively.
"The estimated financial outcome of the related DOCAs is that all employees are expected to either be offered continued employment on equal terms or alternatively, for those employees not being offered continued employment, their employee entitlements will be paid in full. Ordinary unsecured trade creditors are estimated to receive a small return," the statement said.
The new deal does not help Mackay's former McAleese workers or the depot, however, which has already been closed.
"Importantly, the related DOCAs provide an opportunity for the McAleese Group of Companies to continue to service their customers and for suppliers to have the opportunity to continue trading with the McAleese Group of Companies," the statement said.
There is no expectation that McAleese would resume trading on the Australian stock exchange.