Some people just don't understand process and reality of big picture. IMO basically the timeline resets . RT could appoint receiver. The receiver’s power if appointed supersedes the administrator’s powers and works with only 1st security holder ( secured creditor)
The secured creditor has 13 business days to determine if they want to enforce their security interest and take possession of their assets. If a secured creditor does not appoint a receiver to sell their assets during the 13 day “decision period”, they will be bound by the general creditor moratorium on creditors, enabling the administrator to continue to use the assets.
The usual timeline
TIMELINE OF VOLUNTARY ADMINISTRATION
1st Business Day: Appointment of administrator
- The administrator takes control of company
- Directors’ powers cease and liability for insolvent trading ends
- Moratorium on creditors’ claims imposed.
8th Business Day: First meeting of creditors
- Creditors confirm appointment of incumbent administrator or replace the incumbent administrator with another
18th Business Day: Report by administrator issued
- Report details company’s business and financial circumstances
- Report discloses the administrator’s investigations and viability of rescue plan, if proposed
25th Business Day: Second meeting of creditors
- Creditors determine company’s future by voting for either deed of company arrangement or liquidation
The voluntary administrator will:
- Assume sole responsibility for the company’s operations
- Trade on the business or sell the assets/business
- Investigate the company’s affairs
- Liaise with employees, creditors, the ATO, banks, lease companies, landlords and statutory bodies
- Assist and evaluate any deed of company arrangement proposal
- Prepare reports to creditors and ASIC
- Hold meetings of creditors
- Draft deed of company arrangement, if required
If a DOCA was proposed RT still has right to vote it;s full value 2.5 mill and that and other large creditor 2.5mill gives them decision making control of any DOCA so if 2 largest creditors are not happy no DOCA can go ahead.
.If a deal was to be done and someone to fund it the longer it goes on the less likely it will happen is the usual case. It could still be done , there is shell value and rebate assuming it wasn't why accounts were not lodged with a audit issue for example. The triggering dates for this VA could be related to ATO liability and becoming due as all directors wish to avoid personal responsibility. IMO a lot of time and shareholder funds have been spent on advice to people who have put this company in this position and limiting their exposure. Thats business.
Really does make you wonder how a 2.5 mill debt was created by manufacturer and when that work was done and how long it has been outstanding and if any any value of components is included etc. Treatment of such debt may have been an audit issue about continuing business or having recovery actions started?
Just about all pathways lead to ordinary shareholders never knowing just what has gone on and timing of such as no obligation for it to be public of them to be informed.
I you look over at RFX where they are also in VA you will see that the VA has made a point of ensuring no information is leaked out of tent as deals and govt deals with grants and letters of offer along with private funding deals etc were / are probably on table and they don't want details public but not so here as I don't think anything was close. Each VA has their own process for various reasons on what they disclose and what meets obligations.
Some still wonder why shares taken instead of cash - well there was no cash but apart from that with imminent VA it means unlike other staff directors and family are only able to recover a nominal amount of $2k from memory so may as well have some shares that may have value if there is a turn around. Looks like well advised parties when I see these going on ,
As for VA paying staff beyond last pat date - rarely as it eats into cash so unless there is a positive return instantly by continuing to run profitable business unit as they are liable for any outgoings so usually resist that as very risk adverse and process driven
As usual I know nothing and just guessing so will watch and see but at least I know what usually happens in real word and not in an imaginary world where others when told information continuously misinterpret it or outright lie about it origin and significance.
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(20min delay)