This is why I never expose my companies to BANKS, GUT AND RUN,
As many as 1300 employees have been retrenched in the wake of Forge Group’s receiver managers moving to put its overseas units up for sale. In a statement, KordaMentha Restructuring said the counterparties to two power station construction contacts had exercised their rights to have the workers on the projects retrenched. Forge collapsed earlier this week when its financiers withdrew their support following difficulties in completing two power station projects, one in western Queensland and the other in Western Australia. “There is no money to pay employees, no work to perform,” KordaMentha restructuring’s Mark Mentha said in a statement. Advertisement Ferrier Hodgson has been appointed the voluntary administrator with KordaMentha Restructuring the receiver manager. Forge had 1753 employees in Australia with another 814 employees offshore. Along with the retrenchments, offshore units in Africa, Asia and the US would now be put up for sale. Mr Mentha said he hoped some of the retrenched employees would be employeed by new contractors to complete affected projects. "We are working with the receiver, Ferrier Hodgson, to do whatever we can for employees at this dreadful time for them and their families," Mr Mentha said. Additionally, affected employees would be transported back to their home towns and assisted in applying for their entitlements, he said. Overseas operations would continue as normal, but domestic operations would be reviewed on a project-by-project basis. "[Wednesday's] move by the owners of some of the projects forced our hand because there is no cash to carry employees,'' Mr Mentha said. More to come...
