Administrators for Reacon Australia and MMW 3Degrees have shared an update on the first creditor’s meeting held this week and the likely release date for the upcoming creditors report.
Administrator Andrew Blundell, from Cathro & Partners said there were no major outcomes from the first creditor’s meeting held on Tuesday this week and everything remains “business as usual”.
“In relation to the creditor’s meeting, no committee of inspection was formed and there was no replacement of administrator,” Blundell said.
The Federal Court injunction that attempted to wind-up Reacon Australia on Friday 11 April has been adjourned to Friday 9 May allowing more time for the business to be restructured.
Blundell told Sprinter he expects the creditors report to be made available prior to 9 May.
“The next stage of the process is to prepare a report to creditors which we expect will be issued prior to Friday 9 May. We will then issue the report and provide an update on the trading position of the business,” he said.
“At that time creditors will be advised of any Deed of Company Arrangement proposal that has been put forward and they will be in a position to determine the future of the companies. At this stage a Deed of Company Arrangement appears to be the most likely outcome for the future of these businesses.”
Cathro & Partners were appointed administrators Reacon Australia and MMW3 Degrees earlier this month, the same firm that was also appointed to manage Starleaton when it was placed into voluntary administration,
Reacon Group – the parent company of Reacon Australia and MMW3 Degrees – has since been acquired by Sydney-based Westman Printing.
Westman Printing – a company with 45 years of print manufacturing history – has been owned by Vik Gulati and his wife Manasa for the last 20 years.
Gulati told Sprinter at the time of the announcement that he had purchased the parent company with a view to restructuring the two businesses currently in voluntary administration that specialise as an omni-channel provider of mailing, marketing, and print services.
Gulati also confirmed he intends to retain the majority of the workforce of Reacon Australia and MMW3 Degrees under its leadership, with operations continuing on a “business as usual” basis during the voluntary administration process.
Gulati said the move, once completed, will bolster Westman’s portfolio, integrating Reacon’s advanced equipment – including the Fujifilm 1160CF acquired in 2024 – along with skilled talent and access to new markets.
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