Civil and agricultural construction company places itself in voluntary administration

Derrick Vickers and Sam Marsden of PriceWaterhouse Coopers Australia (PwC) have been appointed voluntary  administrators of Ostwald Bros Pty Ltd, and two related entities; Ostwald Bros Civil Pty Ltd and Ostwald Bros Construction Materials Pty Ltd.

They have also been appointed liquidators of a third related entity, Ostwald Facilities and Accommodation Pty Ltd.

The administrators will be conducting an urgent review to ascertain whether the companies can continue operations.

During this period most employees will be stood down for a period of 48 hours.

“We will work with all stakeholders to determine the current position of the company and explore every possibility to restructure it for the future,” Derrick Vickers said.

Brendan Ostwald, Managing Director, Ostwald Bros said it is with deep regret they announce, they are placing Ostwald Bros Group and Ostwald Construction Materials into voluntary administration today.

Over the past 27 years the family-owned and operated company has been a major employer and contributor to regional Queensland.

With the significant downturn in mining and infrastructure, Ostwald’s has actively explored ways to keep the company trading including having downsized, sold major assets, reinvested profits in the company and more recently attempted to refinance and sell the business.

“Despite our best efforts, more recently, the company has been effected by commercial issues on two major infrastructure projects which has impacted cash flow and forced this decision today,” he said.

“We will continue to actively assist the administrators, PriceWaterhouse Coopers who are now responsible for all Ostwald operations and decisions moving forward.

“Staff and contractors were advised this morning and I would like to take this opportunity to thank our hardworking team for their loyalty and efforts.

“We would also like to thank our suppliers and customers who have supported Ostwald. We are deeply saddened by this decision and are acutely aware the impact it will have on our loyal employees, their families and the local community.

 Following its review PwC will deliver a report to Ostwald Bros’ creditors, with the first meeting of creditors due to take place on Wednesday, September 6, 2017.