Collapsed SA company owed staggering $70m

Another casualty was the collapse of its sister company Nexteel, which produced pre-painted steel, and went under owing $18 million to 130 creditors.

The failure of both companies has left 200 employees with $3.2 million in outstanding unpaid entitlements, including superannuation, although the companies continue to trade.

Creditors include ASX-listed finance company Earlypay, which is owed close to $29 million, a bill of $8.7 million pending to the Australian Taxation Office and $4 million for the Japanese industrial conglomerate Mitsui & Co.

There is also US-based steel products manufacturer ITC Manufacturing that which has a $3.1 million claim and landlord Taminga Street Investment is owed $1.9 million.

The soaring cost of steel, supply chain disruptions as a result of Russia’s invasion of Ukraine and global instability were blamed for the company’s collapse.

Potential buyers are being sought for the business, while company director John Easling is proposing to take control back of the company under a deed of company arrangement (DOCA).

Administrator Glenn Franklin from PKF said the DOCA would outline a restructure plan for the companies but would require the approval of creditors.

“We continue our role as administrators and the director has indicated that it remains his intention to submit a deed of company arrangement proposal for creditors to consider as part of the voluntary administration,” he told The Australian.

“The receivers and managers are also conducting a sale of business campaign concurrently with offers to be received by January 31, 2023.

“A further report to creditors will be sent out in the coming weeks once a DOCA proposal is received.”

Revolution Roofing has manufacturing sites in Adelaide and Perth that supply processed steel roofing, fencing, cladding and other products into the residential and commercial markets and has been operating since 2009.