Due to its debts, Lutum, a major supplier of building materials in Australia, has entered voluntary administration.
It has around 150 workers and produces roofing tiles and masonry components. It has facilities in NSW, Victoria, and South Australia.
Before it was separated from Boral in 2021, Lutum was a part of the company, which was one of the largest producers of construction materials in the country.
It was then sold for $12 million. Four administrators, namely Morgan Kelly, Stewart McCallum, David Kennedy, and Martie Tziotis, have been appointed to look after the company.
According to Mr. Kelly, the company will continue to operate as usual and produce its products.
He noted that the appointment of the administrators was made at a time when there was enough working capital to allow the company to restructure.
He noted that the protection of the company’s voluntary administration gave it time to implement a restructuring.
The company will continue to work with its stakeholders to ensure that its employees are supported.
During the past few months, he said, Lutum had experienced a challenging period due to the increasing pressure in the industry and the record rainfall in Australia.
According to Mr. Kelly, the administrators are currently seeking a party that can provide Lutum with funds through a sale.
The process is expected to be completed in around three months.
Lutum could potentially be restructured internally, but the administrators believe that an equity solution, which includes a partial or full sale, would be the best option for the company.
He noted that since it is one of the three major producers of roofing tiles in the country, the demand for its products would remain high.