McAleese in bailout negotiations with SC Lowy

The firm has entered exclusive negotiations after extending voluntary suspension

McAleese in bailout negotiations with SC Lowy
McAleese has extened its voluntary suspension for an additional period of up to one month.


McAleese has extended its voluntary suspension for an additional month as it begins exclusive negotiations over a financial bailout with SC Lowy, a debt fund manager headquartered in Hong Kong.

SC Lowy has until April 15 to complete due diligence and make a binding proposal to the transport firm.

McAleese will continue to accept competing proposals on the condition that SC Lowy is given the opportunity to come up with an improved or superior proposal.

The recapitalisation proposal will be subject to approval from McAleese's creditors.

With a current asset deficiency of over $163 million the company will be hoping for a positive outcome from the ongoing negotiations, however, it states that there is no certainty that this will be the case.

McAleese has been negotiating a compromise debt and refinancing deal with three firms including SC Lowy since it published its first-half results last month.

The transport company’s net first half net result was down 285 per cent on the previous first half’s $52.5 million profit and came on the back of a 20 per cent fall in revenues to $285 million, compared with $357 million previously.

SC Lowy is a privately owned distressed debt hedge fund manager trading across Asia-Pacific.

The firm invests in distressed bonds, loans and trade claims.

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