Talks to see secured creditors gain control of entities and company removed from stock exchange
The Australian Securities Exchange looks set to lose one of its few listed trucking and logistics companies, McAleese, administrators at McGrathNicol indicate.
A little more than three years after its ill-fated foray into the public domain, creditors agreed to a series of related Deed of Company Arrangement (DOCA) proposals as an alternative to liquidation.
“There is no expectation that McAleese Limited will resume trading on the ASX,” McGrathNicol says.
It adds that the objectives of the DOCAs, which the company has agreed to, are to:
- enable creditors to receive a better return
- facilitate the viable businesses of the McAleese Group of Companies to continue as going concerns
- enable as many employees as possible to remain employed
- facilitate the efficient distribution of funds to creditors.
“The related DOCAs will facilitate a fund contribution of $10 million from the secured creditors, which is expected to be received this week.
The estimated financial outcome of the related DOCAs is that all employees are expected to either be offered continued employment on equal terms or alternatively, for those employees not being offered continued employment, their employee entitlements will be paid in full.
“Ordinary unsecured trade creditors are estimated to receive a small return.”
The administrators say the subsidiaries are expected to continue trading “on an uninterrupted basis under the control of management.
“Importantly, the related DOCAs provide an opportunity for the McAleese Group of Companies to continue to service their customers and for suppliers to have the opportunity to continue trading with the McAleese Group of Companies.”
McAleese entered voluntary administration in August and has since seen its management and board leave.
Sunshine Refuellers failed to become part of the DOCAs as administrators were not appointed to it.
ATN has sought information on its status.