'Final negotiations' underway on Mannway's future

Insolvency firm says it is in "final negotiations" to strike a deal on Mannway's future

'Final negotiations' underway on Mannway's future
'Final negotiations' underway on Mannway's future
By Michael House | December 2, 2009

The insolvency firm appointed as the receiver of failed transport operator Mannway says it expects to make an announcement on the future of the company within the next week.

Ferrier Hodgson's Brendan Richards says there have been ongoing discussions with numerous transport companies since the carrier went under on October 14.

"We are in final negotiations with a number of different companies and expect to be in apposition to make an announcement on the situation sometime next week," Richards says.

Richards says the interest in Mannway has been strong but over the last two months a number of companies have fallen away.

Those who are left now appear to be serious about taking on the business and serving Mannway’s clients.

Richards says Mannway's clients BlueScope Steel and OneSteel have been a major part of discussions.

"The view of Mannway’s customers is a critical factor in successfully completing our outcome," he says.

Mannway runs some 600 vehicles and manages 10 warehousing sites in New South Wales, Victoria and Queensland with more than 100,000 square metres of customer storage.

More than 300 staff are employed by the operator.

Mannway fell behind repaying lenders GE Money and DaimlerChysler and lost a significant contract with home improvement and hardware company Bunnings.

Its investment in the declining steel market, working with customers including OneSteel and Bluescope, also contributed to the profit downturn, Richards says.

Ferrier Hodgson has said it wants to sell the business as a whole.

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