Viento administrators appointed

FINANCIALLY struggling mining services provider Viento Group has appointed voluntary administrators to its business despite securing two large contracts over the past month.
Viento administrators appointed Viento administrators appointed Viento administrators appointed Viento administrators appointed Viento administrators appointed

Viento has gone into voluntary administration as it struggles with debt reported at $2.1 million in December.

Jack McGinn

Richard Albarran, Brent Kijurina and Cameron Shaw of Hall Chadwick Chartered Accountants were appointed as joint and several voluntary administrators of the company yesterday.

Their appointment follows a tumultuous period for the company, which posted a financial half-year loss of $A14.5 million, leaving it $2.1 million in debt at the end of December.

The company incurred significant losses on a project run by HVLV, a switchroom building company it acquired at the start of last year.

On March 9, the company announced a renounceable rights issue to raise up to $7.23 million to reduce its debt and for working capital. It was also in negotiations with Patersons Securities for an underwriting of up to $6 million. 

No update has been provided on the rights issue or underwriting since.

The appointment of Doug Grewar as managing director and chief executive on March 30 was followed by an announcement on April 2 of a $2 million loan facility to be provided by entities related to directors Ray Munro and John Silverthorne.

The company said at the time that the facility would assist with general working capital and corporate requirements. 

Despite the financial struggles, the company was awarded a $40 million mining, crushing and screening contract by BC Iron for work at its Nullagine joint venture in March and a $7.3 million contract by Rio Tinto for work at the Hope Downs 4 project in April.

Shares in Viento have been suspended following the appointment at 3.6c.

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