Australis Aquaculture enters voluntary administration

Posted by Editorial on 19th January 2009

Australis Aquaculture Limited, a publicly listed Barramundi farming company, has gone into voluntary administration after failing to gain access to the credit needed to repay a $2.75 million loan. They have appointed Mr Mervyn Kitay of WHK Horwath as Voluntary Administrator of the company.

“The Administrator is being appointed following many months of fundraising activity within an exceptionally challenging debt and equity environment,” the company advised in a statement. “To date, the company has not been successful in raising sufficient funds to meet its objectives. The appointment of the Administrator will allow the Board of Directors and management to continue to assess funding options while maintaining continuity of its operations in order to maximize value for all stakeholders.”

Australis, which runs an innovative indoor aquaculture system in Massachusetts and has a commitment to sustainability, reported that they will continue operating their business as normal until a restructure is completed. “Australis management and employees are totally focused on maintaining the continuity of our growing operations and providing uninterrupted supply and service to our customers as we restructure,” Managing Director Josh Goldman, said. “We sincerely appreciate the support and understanding of our employees and industry partners as we work our way through this transition.”

The availability of credit is continuing to prove troublesome for companies in the current economic environment, putting particular pressure on any businesses with high gearing.