The companies that own Hirequip, New Zealand’s largest equipment rental company, have been placed in receivership and the business is being prepared for sale, according to online news reports from New Zealand. A spokesman for receiver KordaMentha and Hirequip chief executive Brian Stephen said the receivership — the New Zealand equivalent of Chapter 11 bankruptcy protection — would not affect operations of the company, which will continue to operate normally.
Hirequip, based in Auckland, N.Z., has 37 branches.
The parent shareholding companies in receivership are Pacific Equipment Solutions Ltd., PES Finance Ltd. and Hire Equipment Group Ltd. The companies are ultimately owned by Tasman Capital Partners. The financiers remain committed to the business, and receiver Brendon Gibson of KordaMentha said in a statement and he saw no need to become directly involved in the operations of the business. The receivership will allow Stephen and senior management to continue running day-to-day operations and focus on long-term planning without potential distractions while the capital structure and ownership of the business is resolved.
Meanwhile, the company is trading well, and has forecasted to bring in NZ $55.5 million (about U.S. $44 million) in revenue in the year to June, up from $51.1 million in 2010-2011.
