A bus manufacturer with operations in Queensland and South Australia has gone into voluntary administration.
BusTech is the second-largest independent bus manufacturer in Australia, making diesel, hybrid and zero emission technology buses.
It has more 270 employees across its two companies in Queensland and South Australia.
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Consulting group Grey House Partners was appointed voluntary administrator of the BusTech companies on Monday.
Administrator Ben Verney said he is looking at various options for the companies’ futures, including a potential sale.
“The administrator is looking for funding support from key stakeholders, including customers and landlords, to enable the companies to continue trading throughout the administration period,” Verney said.
“During this time, options for a sale of business or restructure via a deed of company arrangement will be explored and considered.”
BusTech is owned by Adelaide-based private equity firm Fusion Capital.
It is unclear what liabilities BusTech has at this stage.
Verney said he is looking to quantify the amount owed to creditors and report on the businesses management.
BusTech was part of a $11.75 million state government contract to supply vehicle bodies in South Australia.
South Australia Transport Minister Tom Koutsantonis said Scania, the company which subcontracted BusTech for the work, reported it does not have concerns about meeting the targets of the contract.
“BusTech is continuing to operate while under voluntary administration, and existing production targets remain on track,” Koutsantonis said on FIVEaa radio.
“In terms of state government money, it’s all secure, the buses we’ve got being made are all secure, but we really want BusTech to survive because they do exceptional work.
“We’re hoping they can trade out of this. We’re with them, we’re going to be making sure our contracts remain in place, but in the end they’ve done some arrangements in other states where they’ve got some serious liabilities and that might be what pushes them over the edge.”
A first meeting with BusTech creditors will be held on August 22.
