Armaguard rejects $26 million lifeline to avoid insolvency as Coles ends pause on cash deliveries

Armaguard has rejected a $26 million lifeline offered by some of Australia’s biggest companies to keep the cash transport company afloat.

The company, which is controlled by trucking magnate Lindsay Fox, had been given until the end of the day to either accept or reject a financial lifeline to avert insolvency, and to keep cash flowing to major businesses.

Major banks, supermarkets, Australia Post and retailer Wesfarmers proposed the $26 million rescue package last week to prevent Armaguard’s possible collapse.

But the monopoly cash transporter refused to open its books — one of the conditions of the proposed package — and rejected the lifeline deal on Thursday, confirming it would instead work on its own financial solution.

“Armaguard confirms it is working constructively with all its customers, including its retail customers, banks and other key stakeholders regarding both short-term and long-term financial solutions for the industry to remain sustainable,” Mick Cronin, Armaguard Group’s chief executive said in a statement.

“Armaguard continues to operate its full suite of services and is confident that over the coming months, it will get the business onto a long-term sustainable footing with appropriate support from the industry.”

On Wednesday, former ACTU secretary and Linfox director Bill Kelty represented Armaguard at a meeting chaired by Reserve Bank governor Michele Bullock, who emphasised the urgent need for a resolution.

Coles ends ‘temporary’ pause

Prior to the collapse of the deal, supermarket giant Coles confirmed it had “paused” Armaguard services for the pick-up and delivery of banknotes and coins until April 5, as concerns mounted that the money transporter could collapse.

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