WA contractor, jobs saved as creditors back lifeline bid

Contracting services company Maali Group has been handed a lifeline after creditors backed an eleventh-hour bid by engineering firm Halo Civil to pull it out of administration, securing more than 120 jobs.

The deed of company arrangement was approved by the majority of creditors during a meeting on Wednesday, bringing the month-long administration to an end.

Administrators Rob Brauer and Rob Kirman from McGrathNicol were handed the reins to the embattled multi-disciplinary company in March after it lost a major contract with just four days’ notice.

It had also emerged that Maali Group, which is one of WA’s biggest Aboriginal-owned and run contracting services companies, was grappling with a $10.4 million tax debt.

Administrators had been pursuing a sale or recapitalisation of the company, receiving almost half a dozen non-binding offers from interested parties.

And that included a deed of company arrangement proposed by Halo Civil Engineering, which would see the company gain a 49 per cent stake in the firm and ensure the payment of all past and current employees.

Under the DOCA, founder and managing director Mitchell Matera would retain the remaining 51 per cent.

Matera told this masthead he had poured his blood, sweat and tears into Maali since its inception in 2019, helping the electrical, mechanical, and civil services contractor secure work with BHP, Main Roads WA and Regis Resources.

He conceded that the collapse of a subcontractor, onerous contracts, a snowballing tax debt he had believed was being tended to, and the demands of being a 100 per cent privately owned venture, had all taken a toll.

The administrators’ report concluded that the escalating employee costs were rapidly outpacing revenue, resulting in the business making a loss in recent years.

Matera said he was dedicated to Maali’s survival and his priority was the retention of the 120 staff — 30 per cent of whom were Indigenous – who worked across the company’s three Perth offices, as well as hubs in Picton, Kambalda and Tom Price.

He said he was hopeful creditors would support the Halo proposal, which involved restructuring the business and walking away from difficult projects to ensure the retention of staff and suppliers.

“I’m very young, I was 24 years old when I started this business and this has been a stressful process,” he said.

“It has been an uphill battle for us, but I’ve learned a lot, and I’m really passionate about what this business stands for, and the employment opportunities it creates.

“I’m extremely confident [about the meeting] because what the [new arrangement with creditors would represent] is the business going out to achieve what it set out to, focusing on what we’re good at, and the majority of employees having peace of mind and staying employed.

“I’m confident we will come out the other side and be a stronger and leaner Maali Group because we’ll have a business partner that is really organically aligned with the values I hold near and dear.”

The construction and maintenance services company, which is being represented by MPH Lawyers, had close to 300 staff at its peak.

The administrators had also recommended creditors back the move, insisting it provided a better outcome for the vast majority of employees.

Halo founder Peter Breen said he believed the proposal to be a positive one for both parties.

“At Halo we believe in zero harm, while having a positive impact, and supporting Maali through this process will allow them to continue their positive impact on indigenous people, business and communities,” he said.

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