RCR Tomlinson, with a workforce of more than 3,400 Australia-wide has gone into administration.
Perth-based engineering and construction firm RCR Tomlinson has gone into administration two months after raising $100 million capital from its shareholders.
The action does not only affect its 3400 direct employees, but hundreds of contractors have also been left in uncertainty as administrators work out which areas of the business are salvageable.
In a statement to the ASX, RCR said it had appointed administrators McGrathNichol.
“Further to the company’s trading halt and an announcement on November 12, 2018, the company has not been able to secure additional funding,” the announcement said.
“As a result, the boards of the group companies met and resolved to appoint administrators.”
RCR is one of Australia’s oldest engineering businesses, with origins dating back 120 years when it was founded by brothers Ernest and Edward Tomlinson.
The company’s announcement puts a hold on some very large projects including the Melbourne Underground Rail Loop, the Auckland City Rail Link, and a number of large solar projects across the country as well as a power plant in Indonesia and a lithium-processing plant in the Pilbara.
While some creditors may get something from the administration, it is likely that shareholders will be wiped out from the administration.
At its peak in August last year, shares were trading at $3.50 and the company was valued at almost $1 billion, however when it was placed in administration the shares were trading at 87 cents, with a market value of around just $240 million.
Some of RCR’s currentl projects now left up in the air include”
100MWac (Stage 1) Haughton Solar Farm, being developed by Pacific Hydro.
30MWac expansion of the Greenough River Solar Farm in Western Australia.
The Gannawarra Energy Storage Project will extend the performance of the Gannawarra Solar Farm to a combined 50MWac solar farm with 25MWac/50MWh of battery storage.
RCR was awarded a contract by Metro Trains Melbourne to deliver station upgrade works within the Melbourne Underground Rail Loop (“MURL”).
Engineering, Procurement & Construction and Operation & Maintenance for the 75MWac Clermont and 88MWac Wemen Solar Farms, being developed by international renewable energy company, Wirsol Energy Ltd.
The 68MWac Emerald Solar Farm will supply power under a ground-breaking long term corporate power purchase agreement.
A combined cycle addition to KEP’s existing open-cycle 92MWe gas-fired power plant in Senipah, Indonesia.
The Daydream and Hayman Solar Farms in QLD to produce a combined 200MWac through a total of more than 2 million PV modules.
Under a Design and EPC contract, RCR was to deliver one of Australia’s largest utility solar farms with an initial generating capacity of 110MWac through 430,000 PV modules, creating up to a 200Ha solar footprint.
RCR was awarded a contract with Pilbara Minerals Limited for the Engineering, Procurement and Construction (EPC) of a processing plant for the Pilgangoora Lithium-Tantalum Mine in WA.
RCR with its joint venture partner WBHO Infrastructure was awarded a contract with Pacific Hydro for the Balance of Plant (“BOP”) works for the 30MW Yaloak South Wind Farm in Victoria.