SUN SETS ON FIRM

Solar company goes bust

THE collapse of a major contractor on a near- complete solar farm has left scores of businesses and workers owed hundreds of thousands of dollars for work on the project.

Troubled engineering group RCR Tomlinson was placed in voluntary administration on Wednesday evening and looks headed for a fire sale.

RCR, which is a major enterprise employing 3400 people, has been the engineering, procurement and construction contractor to Pacific Hydro’s $ 200 million Haughton solar farm near Clare, 60km south of Townsville. Workers arriving on the site yesterday were told to go home.

They included about 20 overseas workers from Bulgaria staying in the former agricultural college at Clare, now called Claredale Pastures. Some suppliers to the solar project are understood to be owed as much as $ 300,000.

Claredale Pastures operator Terry Mio confirmed “some money” was outstanding for services they had provided.

She said they were accommodating about 40 workers, half of them from overseas.

Another supplier from Collinsville said it was the second time they had been hit by contractors failing on solar farm projects and they were owed about $ 80,000.

“Government should ensure contractors do the right thing,” the supplier said.

An RCR worker, who did not want to be identified, told the Bulletin he was owed about $ 2000 and was concerned entitlements such as annual leave would not be paid.

“It’s just frustrating because you don’t know what the outcome is,” the worker said.

Chinese- owned solar farm developer Pacific Hydro is understood to be covering some of RCR’s bills.

In a statement, Pacific Hydro interim CEO Rachel Watson said they had secured the construction site and were responding to an “unfolding situation”.

“We will take all of the steps necessary for construction to continue, while maintaining the safety and security of the site,” Ms Watson said.

RCR administrators McGrathNicol said they were assessing the business and urgently seeking funding from the group’s financiers.

“The administrators will work closely with RCR’s employees, suppliers and custom- ers to quickly stabilise operations and to determine the appropriate strategy for the business.

“A sale process will be commenced immediately,” a McGrathNicol spokesman said.

The collapse comes just three months after RCR raised $ 100 million in equity from shareholders to help pay for $ 57 million in writedowns on another two solar farms at Collinsville earlier this year.

Just a few months ago investors were assured the company had a $ 1.1 billion order book and was the preferred contractor for more than $ 2.7 billion in projects. The Electrical Trades Union accused the company of having a “wild west” mentality and using unlicensed workers and poorly trained and underpaid backpackers.

Burdekin MP Dale Last said the collapse would have a massive impact on small businesses.

“The big question mark about this is who is doing the due diligence on these companies before they let the contracts out,” Mr Last said.

A creditors meeting is expected on December 3.