Delivered a successful deed of company arrangement for a forklift and equipment hire business.
Hylenon, trading as Supreme Forks, operated a forklift and equipment hire business on the Victoria and NSW border.
The company had incorrectly completed an audit on its historical superannuation guarantee charge obligations, leading to an erroneous debt owed to the Australian Tax Office (ATO) of approximately $500k, a significantly higher amount than the actual obligation.
Despite several years of attempts to negotiate with the ATO regarding this matter, the continued accrual of interest ultimately left Hylenon with only two choices: either entering administration voluntarily or facing the possibility of court-ordered winding-up.
Prior to the court-ordered winding-up hearing Hylenon was placed into administration. This step was taken to facilitate an urgent expression of interest campaign, with the hope of finding a more favourable outcome than liquidation. The options explored included a recapitalisation through a deed of company arrangement (DOCA) or sale of the business and/or assets.
Our team managed trading operations and engaged in negotiations to propose a DOCA. Demonstrating its ability to operate profitably under our administration, the business successfully navigated this challenging period, which ultimately led to the approval of a DOCA by the creditors.
The DOCA was successfully implemented, enabling the company director to retain control of the business. In addition, all 25 employees retained their employment, ensuring continuity and stability for the company and its workforce.