Mackay mining business TEAM Group enters voluntary administration

A Queensland business with deep links to the mining sector has entered the choppy waters of voluntary administration, joining more than 100 other firms across the state in the past month alone.

Mackay mining service and engineering business TEAM Group has entered voluntary administration. Picture: Zoe Devenport

Mackay mining service and engineering business TEAM Group has entered voluntary administration, putting some 20 jobs at risk.

It is understood the company collapsed on Monday as a result of legacy claims from earlier customers.

Deloitte’s Richard Hughes has been appointed administrator.

“The directors have some disputes with some customers and the issue is the business has not been able to resolve those disputes,” Mr Hughes said.

“The actual business underneath it is still trading and trading OK.”

The administration process brings in a third party to take control of the company and assess its financial position and whether it can continue to trade under a new structure.

Though it is early days in the process, Mr Hughes, who worked on the Virgin Australia restructure, expressed confidence the business could continue into the future.

Mackay mining service and engineering business TEAM Group has entered voluntary administration. Picture: Zoe Devenport

“It’s business as usual,” he said.

“We have been speaking to mainly customers and suppliers to ensure supply continues and the customers want to keep working with us.

“And they have all been very supportive, so we think we can trade the business and get a restructure going.”

Mr Hughes emphasised he would work to avoid a liquidation of the company.

“There is never any guarantee in the process but we have been doing this a long time and the circumstances we have got in front of us that we see so far, we think a restructure is absolutely a good chance of being successful.”

The administrators will meet with TEAM’s creditors for a first meeting within eight business days, or sometime late next week.

A second meeting to determine the future of TEAM will take place in early May.

The Comlek Group warehouse at Mackay Harbour. Picture: Duncan Evans

It is understood Mackay business Comlek Group is a creditor.

Comlek director Michael Donaldson claims TEAM has owed Comlek $1.7m since June.

Comlek itself went into administration in December last year after it was hit with a $9.4m tax bill from the Queensland Revenue Office for unpaid payroll tax going back to 2010.

The company emerged from administration in January with a new debt repayment plan and continues to trade.

TEAM Group’s travails follow a surge of insolvencies across Queensland.

The Australian Securities and Investments Commission recorded 104 administrations and liquidations in March, up 21 per cent from the 86 recorded in the same month last year.