Beaten up BWX shares remain halted amid voluntary administration

What on earth is going on with BWX shares this week?

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It's starting to feel like a while since the beaten-up ASX share BWX Ltd (ASX: BWX) has been available for trading on the ASX. That's because it has been. BWX shares last traded on the share market back on 23 March, almost two weeks ago.

Back then, the company announced a trading halt so that it could "complete its refinancing", which was first announced to investors last year.

And that's all we've heard from BWX over the past fortnight or so. Well, until yesterday.

BWX shares enter voluntary administration

It appears that the company's refinancing efforts did not turn out as planned. Yesterday, BWX put out another ASX statement. This confirmed that the company has entered voluntary administration. Here's some of what the statement had to say:

A range of issues have continued to impact the Australian operations of BWX, including customer destocking and inventory and working capital issues necessitating the Director's decision to appoint Administrators.

The Directors believe entering Voluntary Administration will help progress the restructuring process already underway with new management at BWX and give the company the best chance of future profitability. The Directors will work with the Administrators to ensure a positive outcome in the Administration, with employees and customers remaining a top priority.

BWX was at pains to state that the company's operations outside Australia, as well as its recently-acquired Go-To business, are not included in the administration proceedings. However, it was also confirmed that the company's directors are attempting to find a buyer for BWX's 50.1% stake in Go-To.

So it's unclear where BWX and its shares are headed to from here. If the company is able to secure refinancing, it could well find itself back on the ASX. But that might not happen for a while. We'll just have to wait and see what the company says and does next.

BWX shares last traded at a share price of 20 cents each. That's down more than 90% from where BWX was a year ago. At that share price, BWX had a market capitalisation of $39 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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