AusGroup, unable to service debt, files to wind up

On Dec 5, the company confirmed that it was unable to meet interest payment for a $110 million debt

Unable to service its debt, Australia-based but Singapore-listed engineering firm AusGroup plans to wind up itself. A filing had been made to a Singapore court on May 18.

Tan Wei Cheong, Matthew Stuart Becker and Lim Loo Khoon of Deloitte & Touche are proposed to be appointed as joint and several liquidators of the company.

On Nov 23, the company had already filed for judiciary management. Trading of AusGroup shares has been suspended since Nov 10 last year.

On Dec 5, the company confirmed that it was unable to meet interest payment for a $110 million debt carrying a coupon of 7.45%, part of a $350 million multi-currency debt programme due on Dec 3.

AusGroup suffered from a series of projects that went sour. For example, it bought rights to use Port Melville but the expected contract to supply fuel to the US Navy didn't materialise. It also wasn't able to collect full payment for some of its projects.

For the last reported FY ended June 2022, the company increased its revenue for the FY by 25.6% to A$245 million, but sank into a loss of a A$31.7 million, from earnings of A$1.2 million recorded in the preceding FY2021.

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