Liquidator optimistic about the future of Azzura Marine Nowra

by Jeni Bone MarineBusiness-World.com on 28 Oct 2009 A liquidator for Azzura Marine Nowra, a wholly owned subsidiary of Azzura Marine, says he has already received a 'number of enquiries' about purchasing the company's assets after it went into voluntary liquidation on October 15th. Azzura Marine Nowra was one of three boatbuilding ventures in Australia owned by Azzura Marine.

Liquidator Simon Cathro from Deloitte said operations at Azzura Marine's other two facilities (Newcastle and Azzura Marine Gold Coast) are continuing, but that a 'complete options assessment' is being conducted.
Cathro has received 'a number of enquiries' from interested parties about Azzura Marine Nowra. It recently employed 60 workers.

'Obviously the best outcome for all would be to sell the business as a going concern, and we will follow through on all these enquiries,' said Cathro in a statement.

Azzura Marine has built more than 200 vessels in its three Australian facilities during its 15-year history. But because of a shortfall in orders the company decided to close the business in Nowra.

'The company has experienced a decrease in demand for yachts over the last six to 12 months, declining from a peak of seven 'new build' orders in 2008 to no 'new build' orders in the space of one year,' said Cathro. 'Azzura Marine does not currently have the financial resources to maintain three ship building facilities.'

Following a creditor's meeting yesterday, Cathro said staff in Nowra can now claim outstanding entitlements.

Former workers at the Nowra operations were quoted by local media as observing that company principal and sailing great, Iain Murray was 'clearly moved' by having to shut down the business.

'He had the guts to come down here and tell us face to face, and not send someone else,' said one worker. 'It’s devastating for the town because it will have a knock-on effect,' he added.

Shoalhaven City Council Economic Development Manager Greg Pullen said there is some hope for the situation. He said he plans to meet with the liquidators in coming days 'to look at various options,' including whether it was possible to save the company, under current or different ownership.

Mr Pullen said it may be possible to save the company in some form because, 'There’s work in progress, there are orders on the books.'

Mr Pullen added other boat builders in the region are looking for staff and may be able to offer employment for some of the 70 workers affected.

David Lombe and Simon Cathro of Deloitte said of their duties will be to provide assistance for the 70 former staff.
'As liquidators we will be working quickly to finalise calculations for employees for their entitlements to allow them to lodge a claim with the General Employee Entitlements and Redundancy Scheme (GEERS),' Mr Cathro said.

There is also the option of selling the moulds and designs to interested yacht manufacturing companies in China - some with Australian connections and others without - which seems somewhat of a trend these days.