Aerison Group - Case Update

Richard Tucker, John Bumbak and Craig Shepard of KordaMentha have provided an update on their administration of the Aerison Group, a Perth-based engineering and construction firm that entered voluntary administration on 6 June, sharing that a DOCA proposal for the company has fallen through. The administrators were appointed on 6 June 2023, due to rising costs, supply chain problems and the company’s failure to resolve a significant claim with Roy Hill relating to a saline water reverse osmosis desalination plant. Following their appointment, the administrators continued to trade Aerison Group while exploring options for a recapitalisation or sale. On 4 September 2023, a majority of the company’s creditors passed a resolution that the company execute a DOCA with Pacific Industrial Company (PIC). The administrators worked with representatives of PIC to transition trading supervision, agree a fulsome DOCA, finalise the formal documentation, and work through the conditions precedent of the DOCA. Unfortunately, the process reached an impasse and PIC informed the administrators it would not be proceeding with the DOCA. The administrators then sought and obtained approval from the court to hold a further meeting to consider an alternative DOCA proposal from Applied Pollution Control Pty Ltd trading as APCINFRA (APC), which was approved by a majority of the company’s creditors and executed on 26 September 2023.