Adelaide soda products and lime producer Penrice Soda Holdings has been placed into administration as it looks for a solution to a $117 million debt.
The Australian reports that the company appointed McGrathNichol as a voluntary administrator in order to allow it to continue to trade under chief executive Guy Roberts.
According to McGrathNicol, its partners Sam Davies, Peter Anderson and Thea Eszenyi have been appointed as administrators for Penrice and its subsidiaries.
As the SMH reports, on Thursday Penrice Soda Holdings’ stock was put in a trading halt as Roberts cited "debt restructure and refinancing plans."
Adelaide Now reports that administrator Sam Davies said the company had $117 million in debt and owed trade creditors about $35 million.
“The administrators will be working with all key stakeholders, including employees (their unions), suppliers, customers and regulatory agencies to ensure Penrice Group’s trading operations continue,” Mr Davies said.
“Administrators will also be working with the Penrice Group Board and management to assess recapitalisation, restructuring and sale opportunities.’’
The company manufactures sodium bicarbonate and quick lime. It also imports and distributes soda ash throughout Asia and operates a limestone mine at Angaston in South Australia. It had turnover of $137 million in 2012-13.
In June 2013, Penrice Soda stopped manufacturing soda ash and moved to importing.