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‘Strong response’ from potential buyers circling BusTech

BusTech has received interest from 29 potential purchasers, with a number of parties commencing the due diligence process.

Australian bus manufacturer BusTech could be set to stay in business after going into voluntary administration this month, with “a number of interested parties” interested in buying the company.

In an update provided over the weekend, administrators from Greyhouse Partners say the process of selling the company is progressing well.

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Potential buyers have until today to make a final bidding offer to buy Godfreys Group, with the sale campaign receiving a “strong response.”

“The Administrator considers that process is likely to achieve the best result for all stakeholders of the Companies,” the update reads.

With operations in Queensland and South Australia, BusTech is one of the largest independent bus manufacturers in Australia, making diesel, hybrid and zero emission buses. It has more 270 employees across its two companies.

While the company and administrators look for sufficient funding support during the administration procecss, employees have been temporarily stood down until September 2 2024.

“To enable the Administrator to continue to trade the businesses of the Companies, the Administrator sought funding support from key stakeholders,” the update reads.

“These negotiations have been protracted and accordingly, the Administrator temporarily stood down the employees of the Companies until 2 September 2024.

“The Administrator is hopeful that sufficient funding support will be received shortly to enable trading of the Companies businesses to continue during the administration process.”

The Administrator is conducting investigations into the affairs of BusTech, including the cause of the failure of the business and will be issuing a report of his findings to creditors on or around September 6 2024.

The report will include, amongst other things, an analysis of each offer received from potential purchasers and the Administrator’s recommendation as to the future of the company.

A second meeting of creditors will be held on or around September 16 2024 where creditors may vote on the future of the BusTech.

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