Contractors impacted by Windimurra collapse

The Perth-based miner went into receivership last Wednesday after it was unable to secure additional funding.Emerson Stewart said today that while it is too early to know what percentage of receivables owed by Windimurra will be recovered, the company said it may need to post an adverse one-off expense impact of up to $A600,000 for the 2009 financial year.However, the company said its work on the Windimurra vanadium project was near completion and the impact on revenue was not expected to be material.Paladio subsidiary McFee has a $32 million contract with Windimurra for tanks, piping, steel, plate and mechanical works at the project.Windimurra owes Paladio $4 million and the company said it will make a provision in the second half of the financial year, covering the whole amount.Paladio managing director Victor Kuss said the company remains cash flow positive and, despite the setback, is expected to make a profit for the full year.

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