'Large debt burden' spelt doom for GR George

Over-capitalisation and debt sent GR George over the edge, as administrators tried to salvage company through sell off

'Large debt burden' spelt doom for GR George
'Large debt burden' spelt doom for GR George
By Michael House

As Brisbane based trucking company GR George prepares to auction off its assets on April 7, more light has been cast on exactly why the once significant service provider collapsed.

The firm responsible for taking GR George into administration says poor management and too much debt was largely to blame.

"Essentially it was over geared, over capitalised and had a large debt burden," SV Partners Director David Stimpson tells ATN.

He says SV Partners had tried hard to keep the operator from falling into liquidation and came close to securing a deal late last year for the sale of GR George.

"The company had substantial losses in 2008 and subsequent to our appointment we had put in some changes to try and turn around its measures, but they weren’t enough to get the company back on its feet," Stimpson says.

"We had a deal in December, however, the purchaser pulled out at the last minute."

Stimpson declined to name the once potential buyer, as auction house Grays prepares to sell GR George’s 45 prime movers and 51 trailers.

Stimpson says the value of the assets may stretch into the tens of millions and expects the auction to generate a lot of interest.

"If it were the sale of all the company’s assets we would be looking at an excess of $12 million for the entire company," he says.

Stimpson says GR George will be wound down and deregistered once the sale of its equipment is complete.

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