Concerns over logistics operator Rivet’s debt burden

Mark Rowsthorn says the voluntary administration is a tidying up exercise of the company structure. Picture: Dan Himbrechts

Mark Rowsthorn may be hosing down concerns about the financial state of his transport and logistics company, Rivet, but others are scratching their head about how the company will pay off up to $US220m to its private equity lender, Varde.

Already, two of Mr Rowsthorn’s companies within his Rivet business have been placed into voluntary administration.

This, he says, is part of a tidying up exercise of the company structure, consisting of about 32 entities. He adds that the company is profitable.

But sources say that Rivet’s gold mine project in Western Australia has faced challenges and the business is not generating enough income to service the debt.

Cor Cordis is assisting with the voluntary administration work while FTI Consulting is acting for lenders.

Rivet is an Australian provider of specialised transport and logistics, equipment hire and maintenance, contract mining and aviation services. It also provides bulk haulage and ancillary onsite services to mining companies.

Mr Rowsthorn is the former boss of transport company McAleese that collapsed after one of its Cootes tankers was involved in a fatal crash.

According to a copy of the creditors’ meeting for the two Rivet entities that collapsed, lenders are claiming more than $304m.