ASIC insolvency notice link for Camit P/L below. The company is owned by a discretionary family trust, and Camit P/L has been declared insolvent, and has been placed into liquidation yesterday (12/10/2016).
The liquidators will examine whether the business can be sold to another interested and unrelated party as a going concern, or whether an orderly disposal of the companys assets, will be the order of the day.
I suspect there will be very few takers for the business as a going concern, unless it is offered to Jabiru themselves, at an attractive fire-sale price.
A lot depends on the number of, and the amount owing, to trade creditors - and who can form the largest voting block at the coming creditors meetings.
The vote will hinge on what can be salvaged from the companys assets to cover its liabilities.
If the largest block of creditors votes for an orderly liquidation as the method of recovering any monies owing, then all the moveable assets of the company will be auctioned off, for very little actual monetary return.
The reason for the poor monetary return from a liquidation auction is because the assets are usually very specialised, and can rarely be utilised elsewhere.
If auctioned, some of the CNC machines will be snapped up - but normally at low prices - but a lot of the specialised equipment, and parts and components already manufactured, will be virtually given away.
Remember that banks and finance institutions usually hold all the aces (i.e. all the voting power) at creditors meetings, and trade creditors usually end up with the bath water, after the banks have thrown the baby out.
If this business has financed its property (its premises), and a sizeable proportion of its manufacturing equipment (keeping in mind that CNC equipment is horribly expensive and is rarely purchased outright), then the banks and finance houses will merely sell off the property and equipment rapidly at fire-sale prices, just to "square their books".
These institutions care not a whit about manufacturing knowledge, business goodwill, and the areas where the items will bring best prices with negotiated sales - they will have already written off any losses by the company, and allowed for them in their losses accounts.
Camit P/l - Insolvency Notice