Voluntary administrators, Simon Cathro, Chris Cook, and Ivan Glavas of Worrells Solvency & Forensic Accountants confirm that the period for indicative offers for the sale of the Napoleon Perdis business closed on Monday, 25 February 2019.
Worrells advise a number of formal offers have been received. Those offers and their associated terms are now being considered and the administrators are continuing to work closely with each interested party to finalise the terms of their offers. The process is expected to take up to two weeks.
Mr Cathro said “The administration is still in the restructuring phase to effect optimal business profitability. The administration’s prospects have been promising from the outset and the success of expression of interest campaign is clear evidence of the brand’s value and market relevance.”
The directors have also indicated that they will put forward a proposal for a Deed of Company Arrangement (DOCA). At this time, a DOCA has not been proposed, however the directors have indicated that the administrators can expect to receive a DOCA proposal in the coming days.
If a proposal for a DOCA is received, the administrators will consider its terms and compare it with the offers for the sale. Mr Cathro said, “Our responsibility as administrators to the voluntary administration is to judiciously assess all options available to creditors and make our recommendations for creditors to vote on at the second meeting, which may be to recommend the DOCA or one of the investor/buyer offers.”
Under the voluntary administration regime, it is at the second meeting that creditors determine the future of a company under a voluntary administration appointment.
At the first meeting of creditors on 12 February 2019, creditors were advised by the administrators, that they intended to apply to court to extend the convening period for the second meeting of creditors to three months. The administrators now advise that their application was successful. On 20 February 2019 the Supreme Court of New South Wales, granted an extension to the convening period to a date no later than 28 May 2019, with a second meeting of creditors required to be held at any time during, or within five business days after the end of this extended period.
Worrells explain that a DOCA is a formal agreement between a company and its creditors and any other relevant third parties to satisfy company debts. A DOCA sets out terms and conditions, warranties and indemnities, the extent and nature of obligations, and the relationships between those who are a party to it. A DOCA is one option available under the voluntary administration regime. Alternatively, when directors are not in a position to put forward a DOCA or there is no interest for a sale of business, under the legislation creditors at the second meeting of creditors have the option to resolve to place a company into liquidation.
Last week, Worrells advised that the administrators were ordering more Napoleon Perdis stock to meet current and future demand, and that the Napoleon Perdis partnership with Priceline is continuing to thrive.
Mr Cathro said, “We are delighted by all the industry interest, trade performance, partnership and creditor support and the continued enthusiasm of the Napoleon Perdis teams.”
Worrells has 27 offices nationally and 29 partners, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 45 years.
Partner, Worrells Sydney