The restructuring and sale of the companies, facilitated through a deed of company arrangement, delivered substantial contributions of $1.3 million.
Cor Cordis’ appointment as voluntary administrator involved overseeing a complex structured group providing employee support services, operating as subcontractors within the cleaning services industry.
This appointment extended to four companies, collectively employing over 100 individuals and conducting operations across eight distinct project sites, including food manufacturing facilities and shopping centres. Our challenge was to maintain essential support from key stakeholders, including suppliers, employees, and a key customer. The objective was to continue business operations while formulating an effective sale and restructuring plan.
The key challenge revolved around preserving the group's operations and securing ongoing support from essential stakeholders in a complex and multi-site environment. This included the critical task of maintaining cooperation from a key customer and ensuring the financial stability of the companies.
To address these challenges, the Administrators implemented a strategic plan focused on maintaining key stakeholder support. This involved open and transparent communication with suppliers, employees, and the critical key customer. The aim was to ensure ongoing operations while actively working on a suitable sale and restructuring plan that would secure the companies' future viability.
The result of these efforts was highly favourable. The restructuring and sale, facilitated through a Deed of Company Arrangement received by the key customer and approved by creditors, delivered substantial contributions of $1.3 million.
The ongoing operations of the companies were preserved, safeguarding the future employment of all employees and transferring their outstanding entitlements.
Outstanding superannuation contributions were paid in full, and unsecured creditors received a dividend. This outcome not only preserved the businesses but also provided stability and value to employees, creditors, and key stakeholders in a complex and challenging environment.