The Administrators of Ostwald Bros Pty Ltd (‘the Group’) and related entities applied to the Supreme Court of Queensland for a two month extension of the convening period for the second meeting of creditors on the basis that more time is required to deliver the best outcome for creditors.
Administrator Derrick Vickers of PwC Australia said: “We require an extension to give interested parties time to complete sufficient due diligence to make an offer for the business. A number of parties came to the fore later in the process and have requested more time to analyse the information currently available. An additional two months will enable us to fully consider all offers and determine the best course of action for creditors.
Justice Douglas of the Supreme Court of Queensland ordered a two month extension from 29 September up to 29 November 2017.
A copy of the Application can be viewed on the Companies' website located at: http://www.ostwaldbros.com.au/news/.
The Administrators of Ostwald Bros Pty Ltd (‘the Group’) and related entities have today advised that employees who were stood down last week have returned to work following discussions with lead contractors across nine projects.
Speaking on the outcome of the discussions, Administrator Derrick Vickers said: “It’s pleasing that we’ve been able to negotiate a return to work for these employees, and good that these projects can continue without delay. Our focus now is on our review into the company’s financial position, and working towards the best outcome for all creditors, including the employees in roles that were made redundant last week.”
The Administrators have established a clearer picture of the debt position of the company, with $31 million owed to 536 unsecured creditors, and $30 million owed to the main secured creditor. That position will potentially change as further claims are registered.
More than 20 parties have come forward with expressions of interest in purchasing or restructuring the company, with 15 of these suggesting they would take on the entire business. “We’ve been encouraged by the level of interest, and while it is early days we’re hopeful that a party will be found who is keen to take on the business in its entirety either as a sale or restructure,” said Mr Vickers.
An update will be provided to creditors at the first creditors meeting tomorrow, Wednesday 6 September, 2017.
Following a 48 hour employee stand-down, the Administrators of Ostwald Bros Pty Ltd (‘the Group’) and related entities have today advised that, as a result of the financial position of the company, 260 employees have been made redundant.
A further 140 employees have been asked to continue to stand-down, pending the outcome of discussions with lead contractors on a number of sites that could see these projects return to operation.
Administrator Derrick Vickers of PwC Australia said: “This is not a decision we have taken lightly, and we explored all options for continuing the entire Group’s operations on a business-as-usual basis. Unfortunately the current position of the company is such that this was not possible. However, we are in discussions with contractors at several sites and are hopeful that up to 140 employees will be able to return to work early next week.”
Redundant employees were informed of the Administrator’s decision this morning, ahead of information sessions which will be attended by representatives from Centrelink, the Queensland Department of Education, and counseling services.
The Administrators are continuing their investigation into company's financial position, assets and liabilities, and will provide an update to creditors at the first creditors meeting on Wednesday 6 September, 2017.
Creditors should register their claim with the Administrator by calling (07) 3257 5111.
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© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Liability limited by a scheme approved under Professional Standards Legislation.