A national engineering company with branches in Unanderra and Port Kembla has gone into voluntary receivership.
Southern Engineering Services Group (SES) was placed in the hands of receivers McGrathNicol on Monday.
It is understood part of the company was sold to a buyer on Friday, with the remainder now being overseen by McGrathNicol.
"SES operates several mining services businesses and employs circa 130 staff in locations across NSW, Queensland and WA," a statement from McGrathNicol said.
"The administrators have assumed control of the company's affairs and are undertaking an urgent review of the operations to determine the best course of action for creditors which may include a sale, restructure or a recapitalisation."
The first meeting of creditors will take place on August 28.
In a letter to suppliers, joint administrator Barry Kogan, said "trading will continue as usual whilst we analyse the company's affairs".
Australian Manufacturing Workers Union lead organiser Brad Hattenfels said there were about 30 employees at the Unanderra outlet, and fewer than that at Port Kembla.
"The good thing is that they did go into a voluntary administration rather than the forced one," Mr Hattenfels said.
"All the blokes at this stage have been paid. They've been paid for last week, they've been paid for this week. And they have been guaranteed to continue to be paid their wages."
Mr Hattenfels said he was in contact with the administrators and, at this stage, everything was going well.
"It is early stages. Normally, these things take a month," Mr Hattenfels said.
"There's every chance they will continue to try and find a new buyer for the business. That's probably the best case scenario. After that it's about the business trying to work their way out of administration.
"Hopefully another buyer can be found. Another part of their business found a buyer, so hopefully someone will find a buyer for this part."