Three Incat Firms Holed

Part of cash-strapped Tasmanian shipbuilder Incat has been placed in receivership following unsuccessful appeals to the Federal Government for help in keeping the company afloat. Incat chairman Robert Clifford said in a short statement that PricewaterhouseCoopers had been appointed receiver of Incat Tasmania, Incat Australia and Incat Chartering - three of the nine companies in the group. Mr. Clifford said other Incat companies in Australia and overseas were unaffected.

Incat is Henderson-based Austal's major competitor in the ocean-going ferry market but unlike Austal, Incat has not diversified into the boutique cruiser and luxury yacht sectors to cushion itself from the ferry market's global downturn. Austal and Incat account for about 80 per cent of the world's commercial aluminium ferry market, which contracted sharply in 2000-01. The Hobart builder of fast catamaran ferries has had increasing cash-flow problems and come under growing pressure from its main creditor, National Australia Bank, after failing to sell a number of its spec-built ships. Mr. Clifford said the three Incat companies in receivership have a substantial interest in 14 ships and it was expected the receivership could be extinguished by the sale of one of them.