Voluntary administrators for Australia's only rideshare service catering to women and accompanied / unaccompanied child passengers.
Cor Cordis’ appointment as voluntary administrator involved overseeing Australia's only personalised, safe transport rideshare service catering to women and accompanied / unaccompanied child passengers. This high-profile project operated within a highly regulated industry and entailed multiple stakeholders.
To preserve the business's value and assets, the Administrators navigated the complexities of trading during the COVID-19 pandemic, requiring negotiations with statutory transport authorities, and major creditors, and maintaining employee relations in a volatile environment. Subsequent to negotiations undertaken with numerous interested parties, the business was successfully restructured and sold through a Deed of Company Arrangement, delivering significant contributions and various benefits to stakeholders.
The primary challenge was to maintain the business's value and continue operations amid the unprecedented challenges posed by the COVID-19 pandemic.
This involved intricate negotiations with statutory transport authorities to uphold compliance, negotiations with major creditors, and maintaining employee morale and stability in a highly uncertain environment.
To address these challenges, the administrators crafted a multi-faceted strategy. They worked diligently to continue trading while maintaining compliance with regulatory bodies.
Furthermore, they fostered open communication with all stakeholders, ensuring transparency and trust throughout the process. Engaging with numerous interested parties, the Administrators negotiated a successful business restructuring and sale, ultimately delivering value to various stakeholders.
The outcome of these efforts was highly favourable. The restructuring and sale, facilitated through a deed of company arrangement, generated contributions of $600,000.
The ongoing operations of the company were preserved, securing the future employment of all employees and transferring their outstanding entitlements. Outstanding superannuation contributions and secured creditor claims were paid in full, and unsecured creditors received a dividend. Existing shareholders retained their status, with the potential for a future return on their investment.
This outcome not only protected the business but also ensured its ongoing viability and benefit to stakeholders in a challenging environment.