A 52-year-old central Queensland engineering firm has been placed in voluntary administration after a letter of demand for $430,000 from the liquidators of the JM Kelly group of companies.
Vanessa Jarrett, Rockhampton Morning Bulletin
Subscriber only March 4, 2020 11:40am
A LETTER of demand for $430,000 from the liquidators of the JM Kelly group of companies has forced Rockhampton company, Pierce Engineering, to be placed into voluntary administration.
The 52-year-old business announced the news through a statement exclusively revealed to The Morning Bulletin from administrators, Worrells Solvency and Forensic Accountants.
"The directors of Pierce Engineering placed the company into voluntary administration after suffering a financial hit from the failure of the JMK group of companies and subsequently receiving a letter of demand-for approximately $430,000-from the liquidator of the JMK group of companies," the statement read.
"The Central Queensland region as a whole has been struggling for some time and Pierce Engineering is just one of many businesses that have been impacted by the collapse of the JMK group of companies and other events in the region."
Worrells Solvency and Forensic Accountants in Rockhampton was appointed the administrators on February 27.
Worrells has confirmed the business will be trading as usual while an assessment of the company's financial viability is undertaken.
The employment of all staff is continuing and their entitlements will be paid.
"At this stage of the administration, we're optimistic that a proposal will be put forward that will see control of the company revert back to the directors in approximately a month's time with the business continuing to trade and employ staff in the Rockhampton area," Worrells Rockhampton partner Michael Beck said.
"We understand the impact that the appointment has on affected parties and the community.
"We will continue to proactively communicate at each juncture of the administration."
The first meeting of creditors will be held at the Empire Hotel in Rockhampton on March 10, at 2.30pm.
Creditors wishing to attend are advised proofs and proxies are to be submitted to the administrator by 5pm on March 9.
A second meeting is planned for April 2.
Pierce Engineering was founded by Noel Pierce in 1968, with his sons Mark and Wayne later taking over.
Services include sandblasting and painting, plasma cutting, turning and milling services, fabrication, steel erection, welding, repairs and maintenance.
Pierce Engineering were awarded a subcontract for part of the works for the $240m expansion Capricornia Correctional Centre.