Nighthawk Transport enters liquidation after failed turnaround and costly vendor dispute

Marlu Transport Solutions Pty Ltd, trading as Nighthawk Transport, has entered liquidation after creditors voted to wind up the business on 17 March 2026, appointing Rob Kirman and Rob Brauer of McGrathNicol as liquidators following their prior role as voluntary administrators. The appointment follows a short administration process that failed to yield a restructuring proposal, with no deed of company arrangement put forward and the company remaining insolvent.

Nighthawk, a long-standing freight and logistics provider servicing remote Northern Territory communities, was acquired by Marlu Transport Solutions in May 2024 for $13 million. The business operated a fleet of approximately 153 vehicles and provided essential transport services across key regional routes, including Darwin to Katherine and Gove, with a workforce of 37 employees at the time of appointment.

The administrators’ report identifies the 2024 acquisition as the inflection point for the company’s financial decline. Management alleged that the condition of the fleet and equipment was materially worse than represented during the sale process, with significant repair and maintenance requirements emerging almost immediately post-completion. Within the first week of operations, 20 assets were identified as overdue for major servicing, and the overall asset base was considered overstated relative to its actual condition.

These issues prompted Nighthawk to commence legal proceedings in January 2025 against vendor Bishdun Pty Ltd, alleging deceptive and misleading conduct in connection with the sale. Bishdun has denied those claims and filed a cross-claim for non-payment, leaving the dispute unresolved and set for trial in May 2026. The litigation became a central feature of the company’s financial distress, with administrators noting that material legal expenses incurred in pursuing the claim further weakened liquidity.

Beyond the dispute, the business faced structural and operational challenges that undermined its viability. Revenue proved insufficient to sustain a largely fixed cost base, with earnings highly sensitive to seasonal fluctuations. Wet season road closures significantly reduced transport volumes, while costs, including wages, fuel, and fleet maintenance, remained largely unchanged.

At the same time, Nighthawk experienced a loss of key revenue streams following the acquisition. Cotton haulage contracts, previously generating up to $400,000 per month, were lost due to changes in industry logistics patterns, while the collapse of a South Australian partner removed additional income and backhaul opportunities. These losses compounded existing financial pressure and contributed to sustained trading losses.

Operational instability during the transition period also played a role. The administrators cited disruptions in the handover process, higher-than-expected wage demands, and staff turnover as factors that impaired performance. These issues, combined with ongoing maintenance costs associated with operating in harsh conditions, further eroded margins.

Financial records show the business was loss-making from shortly after acquisition, with EBITDA turning negative in the second half of FY25 and remaining under pressure thereafter. Liquidity deteriorated significantly from early 2025, with overdue liabilities, including tax obligations, exceeding available funding and continuing to grow through to the appointment date. The administrators formed the preliminary view that the company was insolvent from at least 1 January 2025.

Secured debt was dominated by Australia and New Zealand Banking Group Limited, owed approximately $7.5 million, alongside vendor finance claims from Bishdun ranking behind ANZ. The administrators expect ANZ to suffer a material shortfall from asset realisations, with no recovery anticipated for subordinate creditors absent successful litigation outcomes.

A going concern sale process conducted during the administration generated limited interest, culminating in a conditional asset sale to Darwin Freight Services Pty Ltd. While the transaction is expected to preserve some operations and employment, it is insufficient to deliver returns to unsecured creditors, with any recovery dependent on potential claims, including insolvent trading and voidable transactions identified during the liquidators’ investigations.

The liquidation now shifts focus to those recovery avenues, including a preliminary insolvent trading claim estimated at approximately $2.5 million and potential preference and related-party transaction claims. Any pursuit of these claims will likely require external funding and further investigation by the liquidators.