Embattled transport firm McAleese is entering voluntary administration.

The company says it was made insolvent or likely to become insolvent after its financiers, led by high-risk debt investor SC Lowy, pulled out of a deal to recapitalise the company.

The decision to pull the pin in June this year was made because McAleese did not meet a precondition of reducing its rents.

The SC Lowy consortium’s decision not to extend the company’s outstanding debts, triggering due dates on a raft of principal and interest repayments.

As the company cannot to meet those repayments, McAleese’s board had to appoint administrators.

The McAleese directors said the recapitalisation deal “provided shareholders with an opportunity to participate in a recapitalised McAleese with substantially less debt and which the independent expert considered to be in the best interests of shareholders”.

“McAleese is now in voluntary administration and shareholders are highly unlikely to receive any value for their existing shares.”

Joseph Hayes, Jason Preston, William Harris and Keith Crawford from McGrath Nicol have been appointed as voluntary administrators.

McAleese says the SC Lowy consortium and associated interests may try alternative solutions to keep the business afloat.

McAleese’s business operations including heavy haulage and cranes, Cootes Transport, and resources haulage with Atlas Iron in particular.

McAleese's Sunshine Refuellers is separate from the administration.