Yesterday Ferrier Hodgson partners Ryan Eagle and Morgan Kelly were appointed as Receivers and Managers of Subzero Group Limited and various subsidiary entities

The appointment of Receivers and Managers was concurrent with the appointment of Philip Campbell-Wilson and Adam Nikitins of Ernst & Young as Voluntary Administrators on February 11.

The Group will continue to trade as normal whilst the Receivers and Managers look at restructuring and realisation opportunities for the Group.

In an announcement to the Australian Stock Exchange (ASX) on Friday the company advised that its financial performance has continued to improve with January 2016 being the ninth consecutive month of positive earnings.

Despite this performance the failure of the company to gain support for its recapitalisation meant  its main financier decided to place the Group into voluntary administration and receivership to allow for a more effective way to recapitalise the balance sheet.

Subzero Group, CEO Joe Clayton said in the statement "The collective efforts of the team at Subzero and the support from our customers, suppliers, financiers and staff have achieved continuing improved business performance which has given our financiers the confidence to continue supporting the Group."This is a very important step forward for Subzero towards a successful recapitalisation."

The downturn in the mining industry has had a significant impact on the mine services sector.  As mining companies continue to cut spending the flow-on affect is being felt throughout the industry.

Subzero has been struggling like others in the sector with its founder Scott Farrell  stepping down from his position of chief executive officer with the company in November 2014.

Mr Farrell's replacement was the current CEO Mr  Clayton, a former non-executive director of the company, who previously worked as the first manager of Camberwell Coal.

In September 2014 Subzero announced a $13 million loss for the last financial year.

In addition to the $13 million loss, revenue was down 25 per cent to $63.8 million and the company had breached debt agreements with a group of financiers that includes Macquarie Bank.

Established in 1999 as Subzero Services Pty Ltd, the Muswellbrook-based firm employed around 500 workers in 2014, had 90 major clients and services 25 coalmines in the Hunter at that time.

These clients included Rio Tinto, BHP Billiton and Glencore.

The company had operated as a privately owned business before being listed on the ASX in April 2013.

 Regular updates will be made available via the Ferrier Hodgson website at:

www.ferrierhodgson.com.au