Viability Restored


Viability Restored

The Directors approached us regarding advice in relation to their company in April 2001 following a Statutory Demand pursuant to Section 459E of the Corporations Act being served on them and the collapse of their insurer HIH Ltd which put in jeopardy their ability to trade on.

During the Administration period we continued to trade the company on a cash positive basis and control returned to the Directors following the creditors resolving that the company enter into a Deed of Company Arrangement.

The Deed allowed for the directors to realise real property in Sydney and apply the proceeds to pay a substantial secured creditor, employee entitlements, and 100 cents in the dollar to all personal guarantee creditors and a substantial dividend to remaining unsecured creditors.

The Deed of Company Arrangement has been effectuated and company continues to trade successfully today.