Central Queensland Quarries
Client CEntral Queensland Quarries
Central Queensland Quarries was seeking to refinance or monetise assets and parts of its business after a period of depleted earnings following a slowdown in infrastructure and mining investment in the local region. After a number of failed processes, the company appointed Administrators and subsequently went into liquidation. Gordon Brothers provided a solution for whereby we acquired the majority of the plant and equipment as part of the liquidation managed by FTI Consulting, and in parallel entered into a rental agreement to lease a portion of the purchased equipment to a new investor who acquired the rights to operate the sites, allowing three of the quarries previously operated to be restarted. The rental agreement provided the new investor the runway to re-establish operations before refinancing with a traditional bank once the challenges and overhang of the liquidation had been resolved.
Gordon Brothers then partnered with a local auction house to manage the disposition of the balance of the equipment we had acquired which had been identified as surplus to the needs of the quarrying sites. No other financier or restructuring investor was able to offer the comprehensive solution given the need to provide financing to a start-up business which was trying to re-establish a previously insolvent operation, and take principal risk on the surplus equipment.
Equipment included mobile crushing gear and screening plant, with the quarries providing a mix of rock, aggregate and sand.