McAleese given $10M lifeline to save jobs

Failed transport company McAleese has put truck loads of assets up for auction.
Failed transport company McAleese has put truck loads of assets up for auction. GraysOnline

SECURE creditors of the McAleese Group have thrown the ailing transport company $10 million to save jobs.

On December 19, the second meeting of creditors, there was a vote to accept the Deed of Company Arrangement that would see the company continue to operate with a $10 million lifeline.

Accord to a statement from receivers McGrathNicol the objectives of the cash injection was to help creditors get better returns, keep the group of companies operating, retain jobs and ensure funds were distributed effectively.

"The estimated financial outcome of the related DOCAs is that all employees are expected to either be offered continued employment on equal terms or alternatively, for those employees not being offered continued employment, their employee entitlements will be paid in full. Ordinary unsecured trade creditors are estimated to receive a small return," the statement said.

The new deal does not help Mackay's former McAleese workers or the depot, however, which has already been closed.

"Importantly, the related DOCAs provide an opportunity for the McAleese Group of Companies to continue to service their customers and for suppliers to have the opportunity to continue trading with the McAleese Group of Companies," the statement said.

There is no expectation that McAleese would resume trading on the Australian stock exchange.

Topics:  business lifeline mcaleese mcaleese group

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Snitz sizzles to win qualifier with ease

IN FULL FLIGHT: Brisbane jockey Robbie Fradd streaks clear to win the $150,000 NRRA Country Championships qualifier on board Snitz, trained by Matt Dunn, at Clarence River Jockey Club.

SHORT priced favourite sends everybody home happy.

Ballina Players brings popular military drama to the stage

ON STAGE: John Rado as Colonel Nathan Jessep and Dylan Wheeler as Lt Daniel Kaffee in the Ballina Players production of A Few Good Men.

Tickets are on sale for their new production of A Few Good Men

Triumph of dreams ... it all started with one bike

A CLASSIC: Meerschaum Vale's Col McAndrew with his Triumph 1956 Speed Twin which he will show at the Northern Rivers Classic Motorcycle Club's Show and Shine at Alstonville Plaza on March 18.

Col has six classic bikes; 100 expected at show

Local Partners