Nobles rescue plan approved by creditors, protecting SA company from closure

Creditors of historic industrial firm Nobles have approved a rescue plan, saving the historic company from closure and protecting 100 jobs.

About 100 jobs have been saved at historic industrial company Nobles, with creditors approving a rescue plan that will protect the 111-year old company from closure.

Creditors met via teleconference on Wednesday to vote on the takeover proposal, which had been put forward by investment company E&A Limited (EAL) and Nobles chief executive Rhys Goldsworthy.

The approval means EAL will take over control of the company, which supplies lifting and rigging products and services to the mining, oil & gas, defence and other industries.

The company’s merchandising division will be closed down, but its core engineering, production and services arms will continue to operate.

About 55 employees, mostly in head office roles, are expected to be let go, leaving a workforce of about 100 ongoing staff.

Before the deed of company arrangement (DOCA) proposal can come into effect, all Nobles shareholders must agree to give up their shares to the new ownership group without receiving a payment in return.

Nobles headquarters on Grand Junction Rd in Kilburn. Picture: Supplied

Administrator James McPherson of Meertens said on Tuesday that 83 per cent of shareholders had already agreed to give up their “worthless” shares, and under the Corporations Act he could seek court orders for the transfer of the remaining shares.

After the vote on Wednesday, he said that process would now get under way, paving the way to the transfer of ownership.

Nobles has close to 150 shareholders, with most of the company owned by extended members of the original Noble family.

Mr McPherson was appointed last month to help restructure the company, which had struggled to bounce back from the end of the mining boom.

At its height the company employed close to 300 staff and was the country’s largest supplier of lifting and rigging services, designing, distributing and manufacturing products including wire ropes, synthetic and chain slings, hoisting equipment and other industrial components.

As part of the DOCA, more than 600 unsecured creditors owed $5.2m are expected to recover a dividend of up to 33 cents in the dollar.

About 155 staff are owed $2.8m in unpaid entitlements and super, and EAL has agreed to take on those debts for employees retained by the company. Terminated staff are expected to be paid out their entitlements in full.

Mr McPherson had recommended creditors vote in favour of the DOCA proposal, arguing it would deliver the best return to creditors while protecting 100 ongoing jobs.

“Should EAL be successful … and executes the DOCA, the company will have a net asset base of $1.77m, a new board and management team and a strategy for acquisition to grow shareholder value,” he said in a report to creditors prior to Wednesday’s meeting.

EAL controls 10 wholly-owned subsidiaries across the mining, resources, defence, water, energy and financial services industries, employing more than 1400 people.

Nobles, which supplies lifting and rigging products and services to the mining, oil & gas, defence and other industries, was established by founder George Adie Noble as a coal dust marketer to the foundry industry in 1911.

Mr Goldsworthy and EAL have been contacted for comment.