A company founded by a philanthropic Wollongong businessman may be about to throw the Wideform Group a lifeline.Shin Investments - the parent company of the Allied Group of Companies - is reviewing Wideform's position before it potentially makes an offer to the company's adminstrators and creditors.The intensely private businessman, Marsden "Mick" Williams, who turns 94 in March, established his first business in Wollongong in 1939 and Allied in 1948.
EDITORIAL: Wideform's workers given grain of hopeMr Williams donated $3 million to the University of Wollongong in 2006 to fund a professional chair at the Graduate School of Medicine. It was the largest private contribution given to the university and was made in honour of his late wife, Roberta.Shin Investments made the approach on January 13, the day before Wideform Group creditors were due to decide the company's future. Creditors agreed to give Shin extra time to develop the proposal."Shin Investments has recently commenced due diligence to determine if there is an opportunity to be involved in the formwork component of the Wideform business," Shin Investments managing director Geoff O'Donnell said."It's very early days, and our involvement, if any, will become clearer in about three weeks."Wideform went into voluntary administration on November 30, owing $58 million.Claims by unsecured creditors are now in excess of $68 million.Bovis Lend Lease has lodged a claim for more than $35 million for losses incurred as a result of the termination of contracts. In turn, Wideform said it has "substantial claims" against BLL that are to be "vigorously pursued".Of the 700 employees, 95 per cent have had their entitlements secured, with 75 to 80 per cent of claims paid out, CFMEU state secretary Andrew Ferguson said.The majority of claims, valued at up to $9 million, were taken over by respective builders.In a report to Wideform creditors, joint administrators Andrew Cummins and Brian Silvia of BRI Ferrier say investigations did not reveal any transactions to suggest Wideform directors Fred Ferreira and Nick Paiva had any disregard for their duties. However, they do point to offshoot ventures as a factor in the company's downfall."While the formwork and construction businesses have been very profitable, it appears they have been unable to fund losses incurred by the shareholders in other businesses," the report said."These ventures included property development projects, a chain of franchise furniture outlets and the development and operation of retirement living and aged care projects."The Wideform directors said in their opinion the companies failed after Bovis Lend Lease terminated five contracts with three of the companies.However, the administrators say, "while the terminations may have hastened the Group's ultimate demise, (Wideform Group) had been experiencing financial difficulties for a period of time".An offer from Shin had the potential for Wideform's creditors to receive more than they would have otherwise. It may also provide an opportunity for the business to continue in some form.Mr Cummins said Wideform's value lay in its assets, including plants, equipment and property holdings, while the company's existing structure also had value.The next meeting of Wideform creditors will be "no later than March 4", he said.
