Shock CMI liquidation

HUNDREDS of workers at manufacturer CMI Industrial have been guaranteed another six months' work following a creditors meeting putting the company in liquidation.

HUNDREDS of workers at manufacturer CMI Industrial have been guaranteed another six months' work following a creditors meeting putting the company in liquidation.

Australian Manufacturing Workers Union (AMWU) Victorian secretary Leigh Diehm said those who attended yesterday's meeting were shocked to hear how dire the company's finances are. Its debts are estimated at up to $40 million and include $1.7 million in unfunded superannuation.

"We knew it was bad, but we didn't think it was as bad as it came out this morning," Mr Diehm said.

Administrators and receivers last month took control of CMI Industrial, a supplier for Ford, after talks failed to sort out bills with its landlord.

Officially placing the company into liquidation yesterday, however, will allow administrators to find a buyer, which could save remaining workers from losing their jobs. About 250 workers at four Victorian plants, and 150 in Toowoomba, Queensland, will continue to work during the six-month reprieve.

Ford did not respond when asked if it had any interest in purchasing its key parts supplier. AAP

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles