Several companies under Cornell and MTQ Engine Systems, enter administration

A string of more than 20 companies, which have been involved in the remanufacture and distribution of diesel engine parts for more than 50 years, have collapsed into insolvency.

A national automotive group has crashed into administration with unknown debts. Picture: Cornell Diesel Systems

A national automotive group, involved in the remanufacture and distribution of diesel engine parts, has crashed into administration with unknown debts.

A total of 23 companies under the Cornell and MTQ Group entered voluntary administration earlier this month.

Cornell Diesel Systems, which has been around for over 50 years, specialises in diesel fuel injection diagnostics, repair, aftermarket parts sales and service.

“Our strategically located branches serve regional and urban centres across diverse industries, including passenger vehicles, fleets, agriculture, mining, rail, marine, and power generation, with tailored solutions for both off-road and on-road needs,” their website states.

Cornell recently consolidated with other industry leader MTQ Engine Systems.

“By bringing our highly skilled teams together, we’re enhancing our capabilities to deliver a more efficient, streamlined, and customer-focused one stop shop for all your diesel system and turbocharger needs,” their website reads.

Cornell Diesel Systems has been around for over 50 years. Picture: Cornell Diesel Systems

The company has several branches across the country under the MTQ branding, in Adelaide, Brisbane, Melbourne, Perth and Sydney.

It’s not clear at this point what led to the administrators’ appointment, or how much the companies owe to creditors and employees.

The businesses under the group appear to be trading as normal.

McGrathNicol administrators Jonathan Henry and Shaun Fraser, who took over on July 16, said insolvency experts Graeme Beattie and Stephen Hundy of Worrells were appointed receivers and managers to all but two companies under the group.

“The receivers are in control of the operating entities and will issue their own correspondence regarding the receivership process they are undertaking,” they said.

Receivers are typically appointed when a company can’t pay its debts and has broken loan terms – often when secured creditors like banks want to recover the money they’re owed.

The administrators said the day-to-day operations of the companies and potential recapitalisation, restructure or sale proposal are now the responsibility of the receivers.

The company has several branches across the country under the MTQ branding. Picture: Cornell Diesel Systems

They said their appointment was made by the director of the company and that they had already obtained upfront funding of $1m to carry out their role as administrators.

Devesh Mishra is listed as the director of key business under the group, Cornell Automotive Group, since 2019.

“The objective of a voluntary administration is to preserve as much as possible of the business of the company or, if that is not feasible, seek a better outcome for creditors than an immediate liquidation of the company,” the administrators said.

To date the administrators said they had completed statutory lodgements and notifications, informed key stakeholders, employees, and customers of the appointment and processed employee payroll.

They said they will continue to investigate the companies’ affairs and analyse any deal to creditors, if proposed.

The first meeting of creditors was scheduled for Monday.

Australian Automotive Aftermarket Association chief executive Stuart Charity said he was “saddened” to hear of the administration.

Mr Charity said he was “saddened” to hear of the administration. Picture: Cornell Diesel Systems

“MTQ – and then with Cornell Diesel Systems – has played a significant role in the Australian diesel and turbo aftermarket for decades,” he said.

“Their technical capability, national footprint, and longstanding relationships with workshops have made them an important part of the service and repair ecosystem.

“At this stage, we understand that the company continues to operate while administrators assess the situation, and we encourage suppliers and customers to monitor developments closely.”

Mr Charity said the association will continue to support their members through any resulting changes to service continuity or parts availability.

“This event also reinforces the importance of a resilient and diverse supply chain in the aftermarket sector – particularly for critical systems like diesel fuel injection and turbocharging, which are central to many commercial and heavy vehicle operations,” he said.

Cornell’s website said the business was first established by Bruce Cornell, originally known as Cornell Fuel Injection, in 1973 in Port Melbourne.

Cornell’s website said the business was first established by Bruce Cornell. Picture: Cornell Diesel Systems

“Establishing a reputation in the market for being innovative and providing high-quality services, the company evolved and expanded several times to accommodate demand,” it reads.

“Due to continued growth, the company moved to a state-of-the-art facility in 2016 to provide end-to-end servicing of all diesel vehicles.

“The company has always been at the forefront of technological advancements in diesel engine subsystems, with a long, established history with Bosch, Delphi, DENSO, Steinbauer, Stanadyne, Yanmar and Zexel.”

MTQ Engine Systems was formerly known as Dynamic Turbochargers and has been operating in Australia since 1970.

It was acquired by Bapcor – which takes in brands including Autobarn, Autopro, Opposite Lock, Midas, and Shock Shop – in 2016.

It was reported late last year that Bapcor had sold off MTQ to an undisclosed buyer as part of its broader strategy to exit non-core assets.

Originally published as Several companies under Cornell and MTQ Engine Systems, enter administration