Voluntary Administration Keeps Mining Services Business Trading

Client Overview

The client was an Australian mining services company who provided electrical, mechanical and maintenance services to mining, energy and infrastructure businesses across Australia.  

The business had in excess of 77 employees, alongside contractors and generated around $8 million in revenue in FY26. It supports clients from construction through to ongoing operations and maintenance, particularly servicing critical essential services to the community.  

After reporting losses in three of the previous four years, growing debts threatened its ability to continue trading with jobs, client contracts and ongoing operations at risk. 

​Engagement scope​

Nick Combis was appointed voluntary administrator to oversee trading, assess the company’s financial position and develop a restructuring plan to preserve business operations and improve creditor returns.

Our approach

Following our appointment, we focused on maintaining business operations, securing funding and preserving value while assessing the company’s restructuring options. 

We worked with the director, management and key lenders across four key areas: 

Maintain business operations 

We managed the day-to-day trading of the business and maintained the employment of all staff to preserve the business and continue servicing its clients.

Securing funding and managing cash flow 

We arranged a debtor factoring facility to fund trading costs and support working capital. 

We also pursued unpaid invoices, monitored cash flow and worked with management to control operating expenses. 

Assessing financial viability 

We reviewed the company’s assets, liabilities and financial performance and updated cash flow forecasts to assess its ability to meet its ongoing expenses and proposed creditor repayments. 

Evaluating restructuring and liquidation outcomes 

We compared the expected outcomes of a deed of company arrangement (DOCA) and liquidation, including creditor returns and the impact of closure on employees and clients. 

This analysis informed the restructuring proposal presented to creditors. 

Key Findings and Outcome

Business continued trading and jobs retained 
The business continued operating throughout the administration, retaining all employees and contractors. This protected long-term client relationships and preserved its workforce and equipment necessary to continue delivering services across Australia. 

Funding to cover running costs 
The debtor factoring facility provided an invoice funding arrangement that helped the business to continue trading and cover running costs. In consultation with management, we facilitated collection of overdue accounts, control costs and monitor cash flow. Based on forecasts, we considered the proposed repayments achievable from future trading profits. 

A better proposed return for creditors 

We recommended a formal restructure plan, being a DOCA, which creditors accepted. 

The arrangement provided for an initial $100,000 payment upon execution of the DOCA, followed by $500,000 in contributions over two years. This offered ordinary unsecured creditors an expected dividend being a far superior outcome when compared with no return under a liquidation. 

All employees also retained their employment, with entitlements payable in the usual course of business.  

Business returned to the director within one month  

The DOCA was executed and finalised on the day creditors accepted the DOCA proposal, with a Creditors’ Trust established at the same time. This allowed the company to exit external administration and return full control to its director without waiting two years for contributions and creditor payments to be completed. This avoided any possible breaches of contracts and allows the business to continue unfettered. 

Creditor claims managed separately so management could focus on the business 

Nick Combis was appointed trustee of the Creditors’ Trust and remained responsible for managing creditor claims and distributions. This reduced the risk of disruption to existing contracts and allowed management to focus on business operations, employee management and client commitments. 

Restructuring Solutions for Financially Distressed Businesses

Mounting debts doesn’t always mean the end of a viable business. As this case shows, the right restructuring approach can preserve jobs, keep operations running and improve creditor returns. Our Restructuring & Recovery team works with directors, lenders and creditors to navigate financial distress and find practical solutions. Contact our team to discuss your options. 

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