Contractor collapses owing $10m

UPDATE: Statewide contractor Advanced Traffic Management (WA) allegedly owes more than $10 million to unpaid creditors as the court appoints liquidators to wind up the company.

Business News can reveal the collapsed traffic management contractor owes in excess of $10 million to secured and unsecured creditors, according to liquidators.

On Tuesday, Federal Court Registrar Russell Trott ruled to have Advanced Traffic Management (ATM) wound up in insolvency and appointed liquidators David Hodgson and Andrew Hewitt from Grant Thornton.

It comes after Labour 623 408 855 PTY LTD lodged an application to wind up ATM after the traffic management company failed to pay a material outstanding debt.

The Deputy Commissioner of Taxation later joined the legal action, appearing as a supporting creditor alongside Labour, which is associated with ATM. 

A Grant Thornton spokesperson told Business News that early indications showed that ATM owed creditors more than $10 million, subject to further investigation.

"The company’s balance sheet shows in excess of $10 million in monies owed, however as we progress throughout the liquidation process, this figure will be subject to review,” the spokesperson said.

It’s understood about 400 employees were stood down on Wednesday afternoon after the Bellevue-based traffic management company was forced into liquidation.

ATM is one of 19 contractors engaged directly under Main Roads WA's statewide traffic management contract and that it held other contracts on other major infrastructure projects. 

“Advanced Traffic Management is one of a number of contractors engaged on Main Roads’ projects within the metropolitan and regional areas," a state government spokesperson said.

“Main Roads has a number of other panel contract companies it can call on for traffic management services, so doesn’t expect any impact or delays to projects.”

ATM has subsidiary offices in Albany, Kalgoorlie, Northam, Bunbury, Wanneroo and Kwinana alongside its head office in Bellevue.

Trading under the company name is Albany Traffic Control, Goldfields Esperance Traffic Management, WA Traffic Control, ATM Traffic and ATM Group of Companies.

The company describes itself as “the leading service provider in the traffic management field,” according to its website.

“We have established a client base numbering hundreds of key engineering and construction companies as well as government departments and their contractors,” it said.

It’s understood ATM sent out a company-wide text message informing employees of their immediate cessation of work. 

“We know this is a difficult time for workers who have lost their jobs," a state government spokesperson said.

“We strongly encourage other contractors out there to take on these affected workers, as we are already seeing that happen.

“With the huge pipeline of projects underway, there is an enormous amount of opportunity for workers to find new employment."

ATM was also a client of GO2 Group, a Perth-based recruitment business that entered administration but was later thrown a lifeline to continue its operations.

Before entering administration, GO2 announced that ATM owed a material sum to the company but noted the winding up application lodged in April.

Construction, Forestry, Maritime, Mining and Energy Union chief secretary Mick Buchan described the situation as “disgraceful”.

“We call on the state government to finally wake up and address this disgraceful position before us and insist the principal contractor ... employ these traffic controllers directly on industry rates of pay and conditions,” he told 6PR radio.