Monday, May 28, 2012

Thousands of jobs to go as engineering firm goes under, Australia

Almost 3,000 workers have been stood down in Victoria, New South Wales and the ACT after engineering services company Hastie Group was placed into administration.

Administrator PPB Advisory said 2,700 Australian jobs were on hold after the collapse of the company, which employs more than 7,000 people worldwide - 4,000 in Australia and 3,000 overseas.

But PPB was hopeful that many of those affected would be able to stay in work once details of the company's collapse were worked out.

PPB director Ian Carson said its forensic investigators would prepare a report for the Australian Securities and Investments Commission (ASIC) into a $20 million "accounting irregularity" that precipitated the collapse, making it difficult for Hastie to renegotiate its loans.

Virtually every major Australian bank was exposed to the company's debt of about $250 million, which they could ultimately be forced to write down. Read More