WDS in voluntary administration

WDS Managing Director Laurie Voyer.

WDS Managing Director Laurie Voyer.

A lack of timely and available funding, and an unexpected liability of more than $14 million has resulted in construction contractor WDS entering voluntary administration.

According to a statement, the company entered into voluntary administration after Eagle Downs Coal Management (EDCM) cashed an insurance bond for $A14.2 million.

WDS was awarded an $A142.8 million construction contract with Eagle Downs in 2013.

“This was a completely unexpected development and inconsistent with discussions that had been underway with EDCM about the future of the project,” WDS said.

WDS said that although discussions with EDCM,the issuer of the bond, and its lender, had been progressing well, the company was unable to secure any future drawdowns.

“Coupled with the lack of viable and timely alternative funding, the board is unable to reasonably form the view that the company can remain solvent.”

Martin Madden, Cassandra Matthews and Robert Hutson of Korda Mentha have been appointed as voluntary administrators to oversee the affairs of the WDS Group.

WDS held key contracts on the Australia Pacific LNG (APLNG) and Queensland Curtis LNG (QCLNG) projects, among others.

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