Major contractor Carna in receivership

Usman Azad, SOUTH WESTERN TIMESBunbury Herald

Tue, 10 March 2015 5:52PM

Collie shire president Wayne Sanford yesterday said news of a major contracting company being placed into voluntary receivership added further uncertainty to the future of the town.

On Friday, family-owned company Carna announced it had appointed FTI Consulting as administrators, placing the future of 119 South West workers in doubt.

Carna made it clear the decision was based on a contract dispute with the owners of the Griffin Coal mine, Lanco Infratech.

Cr Sanford would not comment on the dispute but agreed it was not helpful for the future of Collie.

"It adds to the uncertainty and the anxiety people are feeling," he said.

"I think it reinforces what I have been saying for a long time - there needs to be some high level discussion with Government and industry stakeholders around the sustainable use of the resource."

Cr Sanford revealed he met Premier Colin Barnett three weeks ago to discuss the uncertainty surrounding coal mining.

Carna has lodged a civil claim against Lanco seeking payment for work performed and damages.

The managing director, Harry Carna, described appointing administrators as a "difficult but necessary decision".

"This is not a decision we have taken lightly but given the impact of the Griffin Coal mine contract and subsequent disputes the reality is this was a decision we had to take to protect the future of the business," he said.

FTI Consulting senior managing director Ian Francis said a meeting with all stakeholders would be held soon.

"Carna is a business with a substantial successful operational history that has been impacted significantly by a single contract," he said.

"In the period ahead we will seek to preserve as much of this value as possible."

"It adds to the uncertainty and the anxiety people are feeling" - Wayne Sanford

Major contractor Carna in receivership

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