1) Trade out of administration and return control to directors - highly unlikely if losing money.
2) Deed of Company Arrangement (DOCA) - agreement between creditors and company managed by administrator reflecting a deal acceptable to creditors. This can involve shareholders if they need the listed vehicle and included them in a vote if their is a debt for equity conversion, otherwise shareholder don't get a look in or vote at creditors meeting.
3) If no DOCA proposed by anyone then goes into formal liquidation & all assets disposed of to highest bidder.
One thing to keep in mind for those looking at retribution is the administrator is required by law to report to ASIC any wrong doing under corps act like insolvent trading.
My gut feeling is a DOCA will be proposed probably by GT&/or Cornell as this will minimise their loss. HNC can agree or propose their own deal. This needs to be done quickly to ensure staff are kept.
FH - best in the business and will work to achieve fairest outcome, won't be manipulated by any creditor.
CMR Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
