Synopsis
The Company a domestic manufacturer of aged and healthcare equipment from leased sites in Perth and Sydney, sold these goods throughout Australia and internationally. It traded as a full service provider (sales, rental, services, training etc) of aged and healthcare equipment in Victoria.
The Company had 160 employees turned over of $27mill p.a. had a working capital deficiency and could not fund its next wages cycle.
Consequently, the secured creditor appointed Alan Hayes Receiver and Manager to recover the monies it had lent.
Our work included
- Assessment of Company’s ability to trade and funds required to do so
- Sought funding to trade – denied
- Accordingly, we suspended trading and stood down work force
- Concluded an immediate sale of the business was required to preserve value in the business
- Implemented sale program for the businesses in accordance with a strict and short timeframe
- Commenced collection of debtors, realisation of stock and work in progress
- Employed skeleton staffing to assist with the realisation of assets
- Corresponded with all stakeholders
Our work revealed
- Whilst the Company was insolvent, its products and services had earned and enjoyed an excellent reputation
- The Company was not capable of raising additional capital and segments of the business were not profitable
Outcome
- The Victorian based business’ were sold and 17 people offered re-employment within 3.5 weeks of our appointment
- The Victorian business was saved and continues
- The NSW business’ was sold and 31 people offered re-employment within 5 weeks.
- The NSW business was saved and continues manufacturing from the same premise with predominately the same employees
- The WA business was sold, closed and the manufacturing is being moved to South Australia. Short term re-employment was offered to 15 employees
- The secured creditor was repaid in full
- All employee entitlements are being paid
- A pool of funds (to be quantified) is available for the trade and statutory creditors’ claims
Our approach, assessment and strategy elicited the optimal outcome for all stakeholders including;
– 100% repayment of secured creditor
– 100% repayment of all employee entitlements
– Preservation of manufacturing jobs in Australia
– Saving of 48 permanent jobs
– Enablement of continued provision of product and services to the Australian and International clients
– Establishment of a pool of funds for the benefit of trade and statutory creditors
Team Alan Hayes and Wayne Marshall
Year 2017
Period 2 Months and continuing
