Update on Ostwald Bros Group

1 December (update)

The Administrators of Ostwald Bros Civil Pty Ltd have advised that at the second meeting of creditors the creditors voted to place the Company into liquidation and to retain Derrick Vickers and Sam Marsden of PwC Australia as Liquidators. Ostwald Bros Civil Pty Ltd will continue to support Ostwald Bros Pty Ltd and Ostwald Construction Materials Pty Ltd with the leasing of Company assets.

Liquidator Derrick Vickers said: “We believe that this is the best outcome for creditors of Ostwald Bros Civil as there was no Deed of Company Arrangement (DOCA) proposed. There are no employees under Ostwald Bros Civil Pty Ltd so the impact is limited to secured and unsecured creditors for this entity. Now that the Company is in liquidation we will continue our investigations in conjunction with Ostwald Bros Pty Ltd and report to Creditors on potential returns in due course.”

1 December 

The Administrators of Ostwald Construction Materials Pty Ltd have advised that at the second meeting of creditors the creditors accepted the Deed of Company Arrangement (DOCA), which means the business is able to continue as per the terms of the Deed. The Deed is expected to be implemented within 21 days.

The DOCA proposal was submitted on 23 November 2017. The report also detailed the estimated return to creditors under a liquidation scenario, which was voted down by the creditors.

Deed Administrator Derrick Vickers of PwC Australia said: “We believe that this is the best outcome for creditors and the remaining employees of Ostwald Construction Materials. This means that the company can continue to trade including its contracts under the Deed of Company Arrangement. Creditors will be paid out of the Creditors Trust in due course pursuant to the terms of the Deed of Company Arrangement.”

A separate creditors meetings will be held for related entity Ostwald Bros Civil today at 3.00pm in Brisbane.

30 November  

The Liquidators of Ostwald Bros Pty Ltd have advised that at the second meeting of creditors the creditors voted to place the Company into liquidation and to retain PwC as Liquidators. All current contracts will wind down to different stages of completion, resulting in the Company ceasing to trade early in 2018.

Under the liquidation scenario, remaining employees will be terminated upon completion of existing projects and therefore eligible employees may be entitled to lodge a claim for unpaid entitlements under the FEG scheme. If employees resign during the administration period before termination, they will forgo all termination entitlements such as redundancy and payment in lieu of notice.

Liquidator Derrick Vickers of PwC Australia said: “We believe that this is the best outcome for creditors and the remaining employees of Ostwald Bros. This means we will be able to provide employment for these people up to and through the holiday period. Given our trading relationship with principal contractors during the administration period we’re confident we can continue these contracts in an orderly manner thus preserving contract value.”

Separate creditors meetings will be held for related entities Ostwald Construction Materials, on Friday 1 December at 10.00am in Toowoomba, and Ostwald Bros Civil, on Friday 1 December at 3.00pm in Brisbane.

 

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