Hedley in receivership
A GROUP of companies controlled by Tom Hedley has gone into receivership.
The Hedley Private Group Companies today announced the appointment of receivers and managers to certain private companies controlled by Tom Hedley.
The Hedley Private Group operates a number of businesses including Hedley Constructions (commercial and residential construction), Hedley Developments (development of residential land and units) and Hedz (operation of leasehold hotels).
John Park, Bill Buckby and Robert Hutson were appointed receivers and managers.
Mr Hutson said the companies had been impacted by the fall in sharemarkets which caused massive margin calls on the Group’s holdings in Hedley Leisure & Gaming combined with the impact of declining asset values, tightening credit and a marked slow down in construction activity in Cairns and Townsville.
"Despite the best efforts of Tom Hedley and his management team to restructure operations, the downturn in construction in Cairns and Townsville and lack of new development projects meant that the Group was no longer viable," he said.
Mr Hutson said the receivers intended to complete construction of the Vision (Cairns), Trinity Cove (Trinity Beach) and Westend (Townsville) projects as soon as possible with the approval of the Queensland Building Services Authority.
Mr Hutson also said it was business as usual for the group’s hotels.
Mr Hutson confirmed that Tom Hedley would continue to work with the receivers to maximise the outcome for all creditors given his extensive experience in property construction and development as well as his working knowledge of the Group's hotel operations.
"Tom has been devastated both personally and financially by this but his first thoughts were for the employees and creditors of the Group and those people who have supported him personally and in business since he started his plumbing business over 40 years ago," he said.
The receivers are not appointed to HPS Pty Ltd which operates the plumbing business founded by Tom Hedley.
This business, which is run separately, is not affected by the receivership and continues to operate under the control of its existing management.
The companies subject to the appointment of the receivers are Tom Hedley Pty Ltd TW Hedley (Investments) Pty Ltd; Hedley Developments Pty Ltd Hedleys Pty Ltd; Hedley Constructions Pty Ltd; Hedz Pty Ltd; Arumpin Pty Ltd TWH (QLD) Pty Ltd; Hedley Commercial Property Services Pty Ltd.
Last month, Mr Hedley said business was "just terrible" and said he was sweating on the release of Federal Government stimulus projects in a bid to keep his workforce employed.
Full coverage in The Cairns Post tomorrow.
The Hedley story
- Hedley quits as director
- Hedley quits as CEO
- Hedley fortune takes $430m hit
- Hedley stops trade
- Hedley trade halt
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Struggling: Cairns businessman Tom Hedley.
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