The Group has been under review since May due to sustained poor market conditions in the oil and gas and infrastructure sectors and HHA’s inability to support the high fixed costs of its leased arrangements.
As a result of the administration, McAleese expects a one-off impairment of about $17 million in its financial results for the year ending June 30, relating to loans, accrued interest and the receivables payable by HHA Group to the company.
McAleese is seeking compensation through legal avenues and withdrew working capital support for HHA, describing any further investment as “unlikely” to deliver acceptable financial returns.
The Group does not expect any further financial exposure relating to the HHA Group’s fall, describing its debts as “entirely non-recourse to McAleese Group”
McAleese shares fell 0.5c since Friday and are now trading at A11c.