Tuesday, 13 December 2011

NAB on the hook for $58 million

Chris Hill and Alan Hayes from PPB Advisory are nominally in charge of HP Industries (Hollywood Plastics) after the steel and plastic packaging group’s directors appointed the pair voluntary administrators last Tuesday.

SiN' says nominally because HP's secured creditor National Australia Bank appointed PWC's Greg Hall as receiver/manager the same day.

"The business is under-capitalised and that is the main factor that has led to the decision to appoint Receivers and Managers and Voluntary Administrators," Greg Hall said in a statement.

SiN understands NAB has a $58 million exposure to HP, which was forced to call in the insolvency experts after a period of declining cash flows.

HP Group employs more than 300 people in Sydney, Melbourne and Brisbane and has been turning over approximately $80 million per annum in Australia.

The business produces a wide range of packaging products ranging from small containers to large drums, out of steel, plastic and PET.

The plastics division has operations in Sefton, NSW, Footscray, Victoria and Albany (Auckland, New Zealand).

The steel side of the business operates out of Seven Hills in NSW, Eagle Farm in Queensland and Altona North in Victoria.

Contact SiN

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