McAleese

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McAleese collapse explained

Prime Mover Magazine  /  August 30, 2016

The collapse of embattled logistics firm, McAleese (www.mcaleese.com.au), at the start of the week could leave shareholders empty-handed, according to Brendan Richards (pictured below), head of Ferrier Hodgson’s Logistics practice.

In a CRTNews exclusive, the Melbourne-based industry expert explains where the industry giant went wrong and what will likely happen next.

Q: After a long and hard-fought battle, the future of McAleese was eventually decided on the back of a set of six onerous property leases. What tipped the scale?
A: It wasn’t just one issue alone. With troubled acquisitions, poor investments, a huge debt burden, disgruntled bankers and weakening operating conditions, McAleese has been on shaky ground for a long time. These factors all stimulated the recapitalisation proposal that was developed by McAleese.

Q: But the failed rent negotiation still made the difference?
A: True, McAleese finally fell into Administration because it was unable to resolve a dispute with a group of shareholders who were unhappy with the performance of the company, the management led by Mark Rowsthorn, and the proposed recapitalisation of the company that they felt was unfairly prejudicial to them. The dissident shareholders were associated with the company TTPH, who happened to be a landlord. With a breakdown of trust between those shareholders and Rowsthorn, they refused, through TTPH, to accept the rent reduction proposal. The rent reduction was a condition of the funding arrangement with SC Lowy. Having failed to achieve it in time, the SC Lowy debt became immediately payable which resulted in the insolvency of McAleese and the appointment of Administrators.

Q: It was a political showdown?
A: The circumstances were unique. If TTPH had been genuinely arms-length, an arrangement may have been agreed. But yes, TTPH was ultimately a used as a leverage tool – although I can’t see how the outcome created by the refusal of TTPH to agree to a rent reduction has helped the dissident McAleese shareholders to achieve anything.

Q: So where will the whole thing leave shareholders? Is all lost for them?
A: The shareholders have most likely lost their entire investment. There is little chance that they will receive anything of value from the Administration process. There may be a Deed of Company Arrangement proposed by interests associated with Mark Rowsthorn, but this will be targeted primarily at the creditors rather than the shareholders. I suspect that the proposal will give a better outcome to creditors than a liquidation of the assets would, and will preserve the business. But it is too early to really know how it will play out.

Q: Where do you think McAleese went wrong?
A: In the end it was let down by the poor execution of its strategy. When Mark Rowsthorn bought into it, he was looking to emulate the success achieved at Toll, the building of a logistics behemoth in relatively short time powered by rapid acquisitions and using the funding model available in a public company. The model worked for Toll because it acquired businesses that broadened its revenue base without an over-exposure to any particular industry, segment or geographical region. McAleese, however, had its hooks in resources and energy, and most of the acquisitions that were undertaken in recent years deepened this. It became over-levered in its business model and in its funding, so the end of the resources boom had an exponential impact on McAleese’s bottom line.

Q: Which role did the troubled Cootes business play in that context?
A: The acquisition of Cootes wasn’t a good one. They overpaid for it and what they bought wasn’t what they thought it was. The Cootes family created a business famous for its fleet quality, but after years of private equity ownership and a previous bankrupt owner in ION Group, it was run down by the time McAleese took it on. On top of that, the double fatality involving a Cootes tanker caused the oil companies to take another look, and they took much of their business elsewhere. Cootes quickly contracted from there, but the balance sheet was left with the legacy of having paid too much for a much bigger business. Who knows why investors signed up in droves for Initial Public Offering just weeks after the accident, because the response of the oil companies was fairly predictable.

Q: And how about the failed Heavy Haulage Australia (HHA) project?
A: When the market finally woke up, other acquisitions were on the radar that just compounded the problem. The HHA investment was bullish at a time that called for restraint [and] the WA Freight Lines acquisition did little to help McAleese’s strategic objectives. These investments caused some to suggest that management were aloof to the issues.

Q: Did the heavy exposure to one struggling key client, Atlas Iron, compound the issue?
A: It would be easy to point the finger at the problems of Atlas Iron and certainly McAleese suffered in the downstream of Atlas, but it seemed to be off the rails before that.
Having a strong business strategy and sticking to it is important. But if the strategy proves to be wrong, or is not well executed, then stop, reflect and correct. Keeping on keeping on when the fundamentals are wrong is a sure fire way into the abyss.

Q: Assuming McAleese doesn’t find a way back – what would a large-scale business failure mean for the rest of the Australian transport market?
A: Unfortunately, with the transport market being so heavily saturated, there aren’t many businesses that would shift the market in any meaningful way if they failed. Volumes are typically absorbed quickly by others and the market continues on, as competitively as ever. It would take one of our largest integrated logistics players to fail for anyone to sit up and take notice. With McAleese primarily involved in resources and energy, and with such little activity in that market, I am sure that its volumes could be absorbed by others with little overall market impact.

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CEO blames founders for McAleese collapse

Prime Mover Magazine  /  August 30, 2016

A day after it became public that embattled logistics firm, McAleese, has gone into voluntary administration, Chief Executive and major shareholder, Mark Rowsthorn, has now criticised the company’s founders for standing in the way of a successful recapitalisation.

According to The Australian, Rowsthorn said the founders – led by McAleese director Gilberto Maggiolo – had long resisted requests by the company to cut “boom time” rents on properties they leased to it, as demanded by distressed debt investor, SC Lowy, as part of a rescue deal.

Background: As one of two vital conditions to allow the company to continue as a going concern and pull off a solvent restructure, SC Lowy ahd asked for a renegotiation of the rental leases held with equity shareholder TTPH, which is owned by a group of investors that include the people that created McAleese in the first place.

However, TTPH reportedly refused to engage with management and SC Lowy on renegotiating the rental leases, prompting Rowsthorn to accuse its owners of knowingly pushing McAleese over the edge.

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McAleese administrator seeks to hold new EGM

Australasian Transport News (ATN)  /  August 30, 2016

Recriminations from both sides increasingly played out in public

McGrathNicol administrator Keith Crawford is searching for a new date for the McAleese extraordinary general meeting (EGM) as the atmosphere surrounding the downed firm gets increasingly fractious.

Having lost directors Wayne Kent and Kerry Gleeson yesterday on the appointment of McGrathNicol as voluntary administrators, Crawford chaired the meeting to consider a shareholder pitch to spill the board.

This had been proposed by the Gilberto Maggiolo-led Havenfresh shareholder entity and would see Harold Price and Maurice Smith join Maggiolo on the board.

In the event, the meeting was adjourned, as Crawford "considered that the appointment of administrators was material information for members and members would not have had sufficient information to determine how to vote at the meeting", McAleese tells the Australian Securities Exchange (ASX).

The administrators intend to hold the meeting "as soon as the outcome of the voluntary administration process is clearer".

During the administration, the administrators exercise all of the powers of the existing directors, whose powers are suspended.

The administrators note that the original notice of the meeting did not contemplate that administrators would be appointed to the company.

A supplementary notice will be issued that will specify a new time and date for submissions of proxies.

In the midst of the turmoil, the company’s shares have risen over the past week, from 1.5 cents each to 2.5 cents, leaving the market puzzled.

Meanwhile, public comment from rival shareholders – MD Mark Rowsthorn on one side and opposing shareholding original owners and company-linked property holders for whom Maggiolo has the public profile on the other – have taken each other to task over the company’s predicament.

The immediate point of contention is property rentals, with the former charging the latter with scuppering the least-worse option by refusing to negotiate on a lower rate and the latter denying that and noting the opaque nature of the management-led rescue plan made it unclear who negotiations should be conducted with.

There appears to be deep mistrust from those opposed to the rescue deal about how Rowsthorn’s position would have emerged, given he negotiated it with financier and major shareholder SC Lowy.

It would seem that without a deal with those opposed, SC Lowy, as the major secured creditor, and Rowsthorn, with whom it has been dealing, would have the whip hand in any sell-off of assets or businesses.

The administrators flagged yesterday that they would take a detailed look at all parts of McAleese.

 

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McAleese enters administration with McGrathNicol

Australasian Transport News (ATN)  /  August 29, 2016

Recapitalisation deal expires as unhappy shareholders stand firm on property rental

Troubled transport firm McAleese is in voluntary administration.

Four administrators from forensic accountancy McGrathNicol are now in charge and will now subject each of the group’s four main businesses to an "urgent financial and operational assessment".

All up, Joseph David Hayes, Jason Preston, William James Harris and Keith Crawford will control 20 entities, including Cootes Transport Group, WA Freightlines and Jolly’s Transport Services.

They are part of four main businesses:

• Heavy Haulage and Lifting – comprising McAleese Transport, National Crane Hire and Walter Wright Cranes and offers integrated heavy haulage, general freight and lifting solutions across Australia
• Specialised Transport or WA Freight Group – providing express transport services to and from all major capital cities both interstate and intrastate
• Oil and Gas – comprising two businesses, Cootes Transport and Refuel International. Cootes Transport distributes liquid fuels, chemicals, LPG and other petroleum products across Australia. Refuel International is a manufacturer of specialist fuel transfer equipment. It is owned by Sunshine Refuellers, an entity to which the administrators have not been appointe
• Resources – providing bulk haulage and ancillary onsite services to mining companies operating in the key resource producing regions of Western Australia. Resources also operates a quarry in Cloncurry, Queensland.

A deal with financier SC Lowy Consortium, which is presently McAleese’s largest secured creditor, was due to end on Friday if a compromise related to property rental arrangements with some shareholders through TTPH Pty Ltd was not found and a waiver from Atlas Iron on haulage contracts was not supplied.

TTPH was unmoved.

"As a result, McAleese’s uncompromised senior debt and all accrued interest was immediately due and payable," the McAleese board says.

"The SC Lowy Consortium declined to enter into any new forbearance arrangement.

"This left the board with no choice but to place the McAleese Group into voluntary administration in order to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders."

Those supporting the restructuring deal, SC Lowy and interests linked to MD Mark Rowsthorn, will now look for an alternative mechanism to effect the recapitalisation, the McAleese board says.

McGrathNicol says the Cootes sale process that began before its appointment will proceed.

McAleese’s shares have been suspended on the Australian Securities Exchange (ASX) and the first creditors’ will be on September 8.

[harrybarbon]

The reality is that poor senior management is the reason for the company's failure, look back at the separation of Toll and the Patrick businesses after Toll purchased Patrick the public company, the public company offshoot that was named Asciano - who ran that and what happen??

The good operators/managers under former Patrick CEO and now chairman Chris Corrigan, from the old Patrick pubic company are back in the transport business after laying low for approx 5 years, after Toll took over Patrick's.

They have formed a new public company named QUBE Logistics and it is performing. Corrigan has brought back most of the old players into the QUBE team - same as the Blues Brothers - the band is getting back together.

Corrigan and his team of operators/management and his core investors have a long successful proven record and they rewrote history on our waterfront transport, ultimately for the good of our economy and the port operations.

And to top it off, QUBE has now recently completed the takeover of Asciano, they have bought back the old Patrick businesses that they created. They also bought the newly recreated Westgate transport/Container/Wharf businesses from Sam Tarascio, another astute and successful long term excellent transport operator.

Why is QUBE performing whilst McAleese failed!!!!! 

The rent issue is just a diversion, McAleese buying Cootes from private equity was like a cow fattened up for sale with ????? to make it look good. And the HHA business - just watch the TV series of HHA - the arrogance on public TV, we don't see the good operators like the QUBE guys on TV, mouthing off !!!!!

Sadly, it is the honest hard working employees, sub-contractors, small private business suppliers and mum and investors that depended on the company for their daily living that have and will suffer the most from this failure.

 

 

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McAleese continues to spark critique

Prime Mover Magazine  /  September 8, 2016

Following McAleese’s voluntary administration last week, two executives from advisory form Grant Thornton have now taken on roles within the business.

According to the Australian Financial Review, creditor SC Lowy brought in Grant Thornton's Head of Financial Advisory, Said Jahani, and fellow partner, Gayle Dickerson, as receivers to two specific parts of McAleese.

“It's understood Grant Thornton were charged with overseeing cash held in one McAleese entity, McAleese Finance, and the company's book of debtors, which back a working capital facility provided by SC Lowy,” the newspaper found.

McAleese's day-to-day operations and financing – and decisions around the company's future – remain in the hands of the board appointed administrator McGrathNicol.

Meanwhile, Melbourne business expert, Brendan Richards, continued to criticise the McAleese management for not taking action early enough.

“It’s easy to think that McAleese was a victim of changing fortunes – a combination of an unforgiving industry downturn in the mining and resources sector and even more unforgiving landlords who wouldn’t consider a rent reduction in tough times,” he wrote in his monthly column for Prime Mover magazine, which will come out in early October.

“But that ignores everything else – troubled acquisitions, poor investments, a huge debt burden, and grumpy bankers. At the heart of the McAleese collapse is something hardly anyone ever talks about – and that is blind faith in persisting with a failed strategy.”

Update: According to The Australian, some 70 businesses have already expressed interest in the whole of McAleese or some of its assets since offers were sought last week. Meanwhile, the corporate regulator (ASIC) has pressured administrators to push ahead with a spill vote of the board in a move that could see major shareholder and CEO, Mark Rows­thorn, dumped from a company.

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McAleese assets to be sold in record auction

Prime Mover Magazine  /  November 2, 2016

Online industrial auctioneer, GraysOnline, has been appointed by advisory firm McGrathNicol to handle the sale of assets held by a key division of the McAleese Group.

In "one of the largest industrial asset disposition programs seen in recent years", GraysOnline said it will be managing the auction and sale of heavy vehicles, light trucks, cranes as well as general office and commercial equipment belonging to McAleese Heavy Haulage & Lifting. 

The heavy transport specialist was part of the McAleese group of companies, which – with the exception of Sunshine Refuellers – was placed into voluntary administration on 29 August.

GraysOnline said in structuring the sale, the company has been working directly with administrators McGrathNicol in order to "leverage their expertise in value realisation strategy, financial analysis and transactional execution".

GraysOnline Head of Institutional & Special Situations, Matt Aubrey, explained the sale process would see the Grays national team mobilise rapidly to "assess, value, catalogue, market and ultimately dispose" of the McAleese Heavy Haulage & Lifting portfolio.

“Grays has built a strong track record for being able to execute complex sales straddling national and international borders with minimum ramp-up period. Our appointment is a credit to the reputation our B2B/ industrial team has built in recent years,” Aubrey said, adding the McAleese Heavy Haulage & Lifting sale is expected to commence this month, with the process likely to take around four months.

GraysOnline Head of Mining & Transport, Fenton Healy, commented the sale would be structured as a series of direct sales and auctions depending on the dynamics of each asset category, and he expected healthy buying interest.

“Prices for the heavy transport assets have stabilised following the bottoming of the mining downturn. The market for general transport assets is generally pretty liquid and this part of the portfolio is well suited to a national, online auction,” he said. 

“It’s a complex assignment but one which the Grays team of experts nationally is uniquely placed to execute for maximum return to the administrators,” he said.

Interested parties can learn more about the sale at the GraysOnline website.

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McAleese trucking assets up for auction

Australasian Transport News (ATN)  /  November 2, 2016

Auctioneer releases preliminary sale timetable for McAleese vehicles and equipment

McGrathNicol has appointed online industrial auctioneer GraysOnline to handle the sale of assets including heavy vehicles and light trucks, cranes and general office and commercial equipment held by McAleese’s trucking arm.

GraysOnline has published a preliminary sale timetable that lists the following for immediate sale: prime movers and low loaders/platforms (high spec prime movers, multi row low loaders and platforms, and dollys), 14 crawler cranes (Kobelco and Terex 110 - 400 tonne), seven all-terrain and rough cranes (Grove, Demag and Liebherr 30 - 220 tonne), franna cranes (AT20 and Mac25 units).                                                        

There will be 30 prime movers and 60 trailers for sale in Brisbane, 20 prime movers and 20 trailers in Mackay, 13 prime movers in Melbourne, six prime movers and eight trailers in Perth, three prime movers in Adelaide, and some additional unreserved prime movers and trailers available for sale in Brisbane.

The remaining assets are currently being assessed before being valued and listed for sale – a process, the company says, complicated by the fact that many of the assets have multiple components that need to located and documented first before they can be valued.

The complete list of assets can be viewed on GraysOnline’s website, with sale and auction expected to commence soon.

GraysOnline expects it will take up four months to complete the sale of all McAleese's Heavy Haulage and Lifting assets.

The auctioneer says it is expecting interest from local and as well as international buyers.

GraysOnline head of institutional and special situations Matt Aubrey says the GraysOnline team is working with administrators McGrathNicol to "assess, value, catalogue, market and ultimately dispose of" the McAleese assets.

"Grays’ international network will have an important role to play in this sale," Aubrey says.

"Over recent years we have a seen a consistent trend toward cross-border transactions, as offshore buyers in Asia, the Middle East and Africa seek quality used plant and equipment to support local projects.

"That’s good for vendors in Australia as it ensures healthy tension in bidding."

GraysOnline head of mining and transport Fenton Healy says the sale will be carried out in a series of auctions and direct sales based on the dynamics of each asset category.

"Prices for the heavy transport assets have stabilised following the bottoming of the mining downturn," Healy says.

"The market for general transport assets is generally pretty liquid and this part of the portfolio is well suited to a national, online auction.

"Cranes are a more specialised category – we’ll be presenting the larger cranes to multinational buyers through our international network and putting the smaller Franna cranes into strategic sale lots depending on their age and condition.

"It’s a complex assignment but one which the Grays team of experts nationally is uniquely placed to execute for maximum return to the administrators."

McGrathNicol has been handling the restructure of McAleese since the company went into administration in late August.

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Centurion expands with McAleese division addition

Owner/Driver  /  November 24, 2016

Western Australia-focused firm snaps up heavy haulage assets and premises and takes on Keith Price

Burgeoning Western Australian trucking and logistics firm Centurion has bought McAleese’s heavy-haulage business and become a national operator in the process, the company has announced.

Centurion has appointed former McAleese part-owner Keith Price to be in charge of this expanded business, which means it now has a presence and assets in Queensland, South Australia, Victoria and Western Australia.

"The acquisition, for an undisclosed amount, will complement Centurion’s existing heavy haulage business and make it the largest heavy haulage service provider in Australia," it says.

Through the transaction the Perth-based company has also entered into an agreement on premises giving it a foothold in the heavy haulage market across four states – Queensland, South Australia, Victoria and Western Australia. Centurion intends for it to be fully operational by January.

Centurion CEO Justin Cardaci believes the purchase of the McAleese fleet was "strategically sound, aligned with the company’s strength in the resources sector and provided Centurion with a unique opportunity to expand".

"As a well-established and trusted Western Australian company, with more than 45 years’ experience in the transport and logistics arena, including heavy haulage, we have the capability to run a successful national business," Cardaci continues.

"Centurion is a financially strong and stable business that understands the industry.

"This asset purchase will give us the platform to access new markets and grow our business nationally."

Centurion wants to continue servicing existing and previous McAleese customers under the Centurion banner, targeting industries nationally that depend on the reliable and safe movement of large equipment, including mining, energy, infrastructure and construction.

"McAleese heavy haulage was once a highly successful business in its own right and we believe once we have transitioned these assets to Centurion there is plenty of scope to re-establish this success.

"We have appointed former McAleese part owner Keith Price, who successfully ran the business until it listed, to be in charge of Centurion’s heavy haulage operation.

"This is an exciting opportunity and we look forward to capitalising on our new status as the largest heavy haulage provider in Australia, providing flexible and reliable solutions for all our customers."

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Former McAleese boss back on top after acquisition

Big Rigs  /  November 24, 2016

Former McAleese part-owner and Mackay resident Keith Price has been put in charge of Centurion's heavy haulage operations after the West Australian company bought the collapsed company's assets.

The acquisition of McAleese Heavy Haulage puts Mr Price in charge of the largest heavy haulage provider in Australia.

According to a company announcement today, the acquisition is for McAleese's assets, including premises.

Centurion chief executive Justin Cardaci said the company wanted to continue servicing existing and previous McAleese customers under the Centurion banner, targeting industries nationally that depend on the reliable and safe movement of large equipment, including mining, energy, infrastructure and construction.

"McAleese heavy haulage was once a highly successful business in its own right and we believe once we have transitioned these assets to Centurion there is plenty of scope to re-establish this success.

"We have appointed former McAleese part-owner Keith Price, who successfully ran the business until it listed, to be in charge of Centurion's heavy haulage operation.

"This is an exciting opportunity and we look forward to capitalising on our new status as the largest heavy haulage provider in Australia, providing flexible and reliable solutions for all our customers,” Mr Cardaci concluded.

So far, there is no information about what this will mean for McAleese in Mackay after receivers McGrathNicol announced the closure of operations last month.

McAleese Group went into receivership on August 29.

INITIAL: WESTERN Australian haulage company Centurion is now a national player following its acquisition of the McAleese Heavy Haulage fleet.

According to a statement, the company has taken a strategic step to expanding its business nationally by purchasing the entire heavy haulage trailing fleet of collapsed McAleese Limited.

The acquisition, for an undisclosed amount, will complement Centurion's existing heavy haulage business and make it the largest heavy haulage service provider in Australia.

Through the transaction Centurion has also entered into an agreement on premises, giving it a foothold in the heavy haulage market across four states - Queensland, South Australia, Victoria and Western Australia.

Centurion's intent is to be fully operational by January 2017.

Centurion chief executive Justin Cardaci said the purchase of the McAleese fleet was strategically sound, aligned with the company's strength in the resources sector and provided Centurion with a unique opportunity to expand.

"As a well-established and trusted Western Australian company, with more than 45 years experience in the transport and logistics arena, including heavy haulage, we have the capability to run a successful national business,” Mr Cardaci said.

"Centurion is a financially strong and stable business that understands the industry. This asset purchase will give us the platform to access new markets and grow our business nationally.”

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McAleese layoffs hit hard: 'So many people are hurting'

Big Rigs  /  November 25, 2016

Former McAleese heavy haulage supervisor and employee of more than 15 years, Brad Wilkes, was made redundant two months ago along with many of his colleagues, following the appointment of administrators to the flailing company on August 29.

Brad, who is based out of Brisbane, was on leave when the news hit that he had been laid off.

He had suffered a workplace injury when on a heavy haulage run, and needed surgery.

"I went in for my operation and then came out to recovery to find the company was in administration and I wouldn't have a job," he said.

"It's now been eight weeks and none of us have got separation certificates, and I mean, I have over a year's pay tied up.

"The worst part is I think there are between two-and-three-hundred people in the same boat, out of work, and nobody knows when we're going to get paid."

The reality of the company's troubles hit home when a job got called off mid-way through, leaving Brad and his colleagues perplexed and far from home.

"We're up at Charlton near Oakey one morning and they said, 'unload it,' administrators have just closed the gates.

"We couldn't believe it.

"I was with two blokes, one had been there for 38 years, one for 45 years.

"We didn't know if we had fuel to come back and so I just went home, came back, handed my ute in and got paid to that point."

The emotional toll the redundancies have taken on staff is troubling, and Brad says one of the concerning realities is that the company didn't offer any counselling services that he knew of.

"For the first two weeks after my last day, I was a mess, I couldn't leave the house. I felt like I'd done something wrong.

"When you come in and you get told you're out of a job because of someone else's decision, it breaks your heart, and I still haven't gotten over it.

"I was a wreck for eight weeks, I couldn't sleep, I'm only just starting to come good and get my confidence back."

The effects have hit Brad's colleagues just as hard, who he says are like family after so many years working together in a high pressure industry.

When Brad spoke to Big Rigs, it was about helping his friends and former colleagues emotionally and financially.

"Everybody was loyal, because we got looked after, it was a family.

"That's the part I'm missing the most and I know those people are out there hurting big time.

"A couple of ladies are going through chemotherapy and we keep in touch and help them but they've got no money mate.

"So many people are hurting, I talk to them on Facebook all the time, they don't know what to do.

"I know what its like not being able to sleep at night because you don't know when money is going to come, you've got kids and a house.

"I keep checking on my friends, I'm afraid for them because no help or counselling was offered."

The sense of family was forged through a shared sense of pride and a commitment to getting the job done, together, as a team.

"We took so much pride in our work, we got along with the guys from Komatsu, Caterpillar and those guys and we really went the extra mile.

"We didn't go there for the pay check, we took pride in our work.

"I used to look at plants and think, that used to be bush five years ago, and we brought 90% of that stuff in.

"It was tough and stressful, but we were so proud of the fact we did that.

"We went through a flood, and we still ran that company while cleaning it up; we slept in cars in the carpark because when you weren't cleaning up the mess you were organising loads."

A big part of the loyalty to McAleese, according to Brad, came as a result of former part owner Keith Price's fairness and commitment to treating staff well.

"We'd go to the Mackay depot, and they'd leave cars there for us to run around in.

"Keith made sure we always had the best, there would be beer in the fridge and if you were low on money he'd feed you and help you out.

"So when he wanted you to do something you just did it, you looked up to him, you don't get bosses like that very often.

"That's why everyone hung around, we were loyal."

Centurion buying McAleese assets and taking on Keith Price as head of their heavy haulage operation, has been positive news for Brad and his former colleagues.

"Since notice of Keith being back on scene, it has bought our confidence up."

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Rivet rises from the ashes of McAleese

Australasian Transport News (ATN)  /  January 13, 2017

New incarnation sees slimmed down version emerge

McAleese has died but been resurrected as a three-segment group under the name Rivet (http://www.rivet.com.au/).

The services are heavy haulage, specialised transport, logistics and lifting and the segments are Rivet Mining Services, Rivet Energy and Refuel International, according to the new Rivet website to which the previous McAleese web address leads.

These corresponding roughly to the main services rescued from its previously listed incarnation.

Mark Rowsthorn is the MD and CEO, while former McAleese realignment project director and was appointed of the Oil and Gas Division general manager Philip Tonks, once of Toll and Asciano, is chief operating officer.

The development follows deals over deeds of company arrangement (DOCAs) that were agreed to before Christmas.

There is no mention of linehaul or general freight, the diversification McAleese undertook two years ago when buying WA Freight Group.

It is understood WA Freight Group was a going concern as part of the pre-Christmas negotiations.

Refuel International is the former Sunshine Refuellers and was not part of the DOCAs’ process.

The aviation refueling vehicles and systems developer based in the Melbourne suburb of Sunshine exists in the new firm under the new name.

The Australian Financial Review quoted McGrathNicol administrator as confirming the restructuring was complete ahead of time and that it had been a "very efficient process with a good outcome".

The newspaper states that the heavy haulage and lifting businesses would not be kept.

But the Rivet website contains a related image and Rivet Mining Services section includes them.

"Our new operating structure provides us with the ability to diversify our offering (commodity, customer, geography) as we now have the ability to partner and offer additional value added services such as crane hire, heavy haulage services, fuels, road maintenance, stockpile management, quarry services," it says.

ATN is awaiting responses to its calls from Rivet.

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