Another major mining and energy contractor, which has significant operations in the Northern Territory, has gone into administration after struggling to pay the interest on a $110 million loan, an industry news outlet has reported.

Singaporean-listed company Ausgroup has three of its divisions in the NT – AGC, MAS and NT Port Marine – and was a major contractor for Inpex on the Ichthys project construction and also the Montara facilities.

The company went into administration the same week as Clough, a joint-venture partner selected to build the long-delayed, taxpayer-funded $515 million Darwin ship lift project.

The Energy News Bulletin reported Ausgroup had problems with debt over a number of years, and that its 2022 annual report stated it had net liabilities of A$110.78 million.

But this week, Ausgroup told shareholders to seek advice after it appointed judicial managers following its default on a loan repayment, which was 7.45 per cent of the $110 million it owes, the media outlet reported.

Ausgroup reconstructed the Montara facilities and also provided module insulation and fabrication at Ichthys.

NT Port and Marine is a marine services company based in Darwin with facilities at Port Melville on the Tiwi Islands, and East Arm, which provides fuel, areas for laydown and storage, and berthage and accommodation facilities.

The major Western Australia engineering company, Clough, and its subsidiaries, were placed into voluntary administration after a proposed short-term loan facility of $30 million from Webuild to Clough – which was to be used as working capital and avoid entering voluntary administration – fell through.

“We are unfortunately seeing far too many companies not being able to balance their books – especially when it comes to debt and their workforce are left to pay the price,” AWU Western Australian state secretary Brad Gandy told the Energy News Bulletin.

He said one of the reasons contractors were struggling financially was a “race to the bottom in contracting” where companies were tendering for work at such low levels that workers were not being paid properly.

“At the end of the day when these companies fail, it’s not the company directors or CEO who suffers, it’s their workforce who are left holding the bag.

“These major contractors employ thousands of Australian workers and need to step up and ensure workers are not left fighting for scraps when creditors close in.

“Although we won’t be holding our breath, we will fight tooth and nail to ensure workers entitlements are protected.”