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PERTH (miningweekly.com) - ASX-listed engineering and construction provider Aerison Group has called in administrators after failing to reach an agreement with iron-ore major Roy Hill.
Aerison in May went into a trading halt and lodged a formal dispute with Roy Hill, claiming the miner owed A$47.5-million for services rendered. Aerison was awarded a design and construct contract for the Roy Hill saline water reserve osmosis desalination plant, with the contract being executed in October 2021 and Aerison starting site activities in February of last year.
The administrators on Wednesday said that they were making an urgent assessment of Aerison’s financial position and viability with a view to undertaking a restructure or sale/recapitalisation process. The administrators were seeking urgent expressions of interest from potential buyers.
Aerison reported a net loss of A$10.7-million for the 2022 financial year despite revenues of A$208.9-million. At the end of the financial year, the company flagged the need to raise additional funds through debt or equity transactions, as well as the need for optimising corporate overhead costs, securing ongoing support from the Commonwealth Bank of Australia for its primary banking facilities, and receiving continued support from trade creditors for extended credit terms, in order to continue as a going concern.