Viento calls in administrators
UPDATE 10.20am: Troubled contractor Viento has entered administration a day after calling a trading halt in its shares to consider fresh funding options.
The company announced this morning it had called in Hall Chadwick to manage its affairs, while it worked on a formal restructure of Viento via a Deed of Company Arrangement..
The business would continue to trade in the interim.
Viento said part of the restructure might involve a recently flagged $7 million discounted rights issue.
"The group currently employs approximately 250 people and the directors believe the restructure proposal will provide the best opportunity to preserve employment and maximise the return to creditors," Viento said.
The company's shares, which last traded for 3.6 cents, have been suspended.
In February, the mining services provider reported a half-year loss of $14.5 million after suffering an LNG project loss and having a subsidiary put into liquidation.
However in the past month, Viento had appointed a new managing director in former MACA boss Doug Grewar and had won $47 million in contracts with BC Iron and Rio Tinto.
BC Iron this morning acknowledged that Viento had entered voluntary administration.
"BC Iron will continue to monitor the situation and advise the market accordingly," the company said in a statement.
"However, the company doesn't currently anticipate this development will materially impact operations."
