BREAKING NEWS - MUSTANG MARINE SOLD BY ADMINISTRATOR
Gold Coast, May 5: Restructuring Works, the voluntary administrators of Mustang Marine, today announced the sale of the boatbuilding business to a prominent Gold Coast businessman.
Cliff Sanderson and Alan Topp of Restructuring Works were appointed Voluntary Administrators of Mustang on March 19. The Mustang brand was founded in Australia in 1974 and it became Australia’s second largest luxury boat manufacturer and retailer, the administrators said.
“Mustang had been investing heavily in research and development and was in the process of launching a number of new boats,” said Sanderson.
“However, the effects of the global economic crisis weighed heavily on Mustang’s financial performance during 2009 and the business was further hampered by a fire at a critical supplier earlier this year.
“As a result Mustang was unable to fully implement its strategy resulting in our appointment in March,” he said.
The administrators conducting a short sale process to ensure the period of voluntary administration was as short as possible.
The purchaser plans to reassess Mustang’s business strategy and to then roll out the new range of boats over the next year, Restructuring Works said. Mustang’s manufacturing facility will be relocated but will remain on the Gold Coast.
“In the next week or so we will call another meeting of creditors,” said Sanderson. “It is likely that a Deed of Company Arrangement, which is essentially a ‘financial deal’, will be put forward for creditors’ consideration, which will result in all employees receiving their entitlements in full and there will be an amount offered to other creditors.”
According to Restructuring Works, since the Global Financial Crisis many companies in the boating industry have encountered financial problems. It added, Australia’s largest boat manufacturer, Riviera, remains in Receivership and at least 12 other boat manufacturers in Australia and New Zealand have either ceased trading or entered Receivership.
In early reports, Gold Coast boatbuilders Maritimo and Mustang had confirmed an ownership deal had been arranged between the two companies.
The Gold Coast Bulletin stated that Maritimo owner Bill Barry-Cotter, who returned from the US last Sunday, confirmed the deal was taking place but details would not be finalised until later this week.
For more info, see www.restructuringworks.com.au
Photo: Maritimo owner Bill Barry-Cotter.