Struggling bus company has been bought out, but not all jobs safe

Struggling Adelaide-based bus company BusTech has been bought by a NSW-based zero emissions transport company but not all SA jobs may be saved.

A potential buyer has been found for struggling bus manufacturer BusTech but jobs may be cut as creditors vote whether to accept a buyout offer. Picture: Supplied

Adelaide bus company BusTech will continue to operate after being sold to NSW-based zero emissions transport group Nexport, but it remains uncertain how many of the company’s 65 jobs will remain.

Administrator Ben Verney, of GreyHouse Partners, confirmed BusTech creditors had approved the Deed of Company Arrangement at a meeting at the company’s Edinburgh headquarters today.

Mr Verney has previously said BusTech had secured creditors, including employees, valued at $33 million and they would receive full entitlements.

BusTech also employed 45 workers at its Queensland facility and Mr Verney said it was possible a “handful’’ of workers could lose jobs but that had not been confirmed.

Nexport is owned by Go Zero – the company website says it is Australia’s number one “integrated zero emission transport solution provider’’.

Mr Verney said Go Zero would be “speaking to all staff in the next few weeks’’.

Go Zero has been contacted for comment.

Secured creditors, including employees, will be fully covered but unsecured creditors will not receive a payment.

GreyHouse had previously said there had been interest from 29 prospective buyers for the company which was placed in administration last month.

BusTech was Australia’s second-largest independent bus manufacturer, constructing “diesel, hybrid and zero emission technology buses for the urban route and school markets’’.

The company was owned by Fusion Capital, formerly known as Brabham Automotive – responsible for building a supercar in Adelaide.

In January, the state government announced an $11.8 million contract with BusTech to manufacture 16 hybrid buses on chassis supplied by Swedish company Scania. At the time the state government said the new buses would be rolled out over the three years and would run on new routes servicing schools including Morialta Secondary College, Riverbanks College and Aldinga Payinthi College.

The previous Liberal government signed a contract for 350 buses to be delivered by 2029, of which 100 have been delivered so far with another 20 in production.

Originally published as Struggling bus company has been bought out, but not all jobs safe