Creditors however may not be so lucky with a meeting scheduled for August 4 to consider a deed of company arrangement (DOCA), which is expected to pay creditors around three cents in the dollar.

John Melluish, partner at administrator Ferrier Hodgson says, “Based on our investigations we do not believe that any dividend would be payable to unsecured creditors in any of the companies should they be placed in liquidation

“As a result of this analysis, we recommend to creditors that the proposal for a DOCA be supported.”

The administrator claims that under the DOCA it is estimated unsecured creditors – including landlords and trade creditors – will receive approximately three cents in the dollar; however, those dividends will be dependent on the final claims received in each creditor pool.

The Administrators’ report concluded that it was unlikely the Group was insolvent for any material period prior to its collapse, and no breaches of directors’ duties had been identified.

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