Action taken by Australian scrap recycler following its failure to pay $2 million in interest.
CMA Corp., an Australia-based scrap metal recycling firm, has been placed in voluntary administration after failing to make a $2 million interest payment to London-based steel trading firm Stemcor.
Following its entrance into administration, the company has appointed Philip Patrick Carter, Marcus William Ayres and Nicholas John Martin of Australia-based consulting firm PPB Advisory as voluntary administrators for CMA and its subsidiaries.
The decision to enter voluntary administration followed the company being unable to pay Stemcor, a CMA shareholder. According to an Australian Associated Press report, CMA has a market capitalization of A$1.4 million but “net debt of A$128.1 million” as of the end of 2012.
CMA operates a network of more than 15 recycling facilities in Australia and New Zealand and trading offices in Singapore and Chicago.