Collapsed carna's debt tops $70m

The mining contractor at the heart of a dispute with Griffin Coal owed more than $70 million when it collapsed two weeks ago. The interim report of Carna Group's administrators shows

the family-owned company's estimated debts included $3 million in unpaid superannuation. The Australian Tax Office claims to be owed $11.7 million, banks and financiers including

National Australia Bank, ANZ and St George more than $29 million, Leighton Contractors $2.3 million and British financiers Greensill Capital $10 million. Trade and other secured creditors

are put at nearly $27 million. Carna called in administrators from FTI Consulting on March 6, three months after it quit its contract with Griffin after months of wrangling with the miner.

Prior to the appointment, Carna had launched court action against Griffin to recover an allegedly unpaid debt. FTI has since put the business up for sale. According to the

administrators' interim report presented to a creditors meeting in Perth last week and now lodged with the corporate regulator, Carna Group's main assets comprise $25.6 million in

receivables and outstanding loans. These included $18.86 million said to be owed by Griffin. Griffin has lodged its own proof of debt against Carna for $12 million, but the creditors'

meeting was told "the amount claimed by the company far exceeds this sum". FTI listed the liabilities for Carna Group at $40 million, with another $37 million listed against Carna

Unit Trust, the linked vehicle which held the group's plant and equipment. The latter was listed with a book value of $40 million, against $31 million of hire purchase liabilities.

Carna was historically profitable, contracting for the likes of BHP Billiton, Rio Tinto and Fortescue Metals. However, FTI said on its appointment that the group had been

"significantly" hurt by the Griffin contract. GET THE LATEST NEWS FROM THEWEST.COM.AU IN YOUR INBOX. Sign up for our emails