Starleaton fate delayed after ‘related party’ submits last-minute documents

L-R: Andrew Blundell and Simon Cathro, Cathro & Partners

The future of Starleaton has been delayed after last-minute documents were submitted prior to the business entering liquidation by a ‘related party’.

Starleaton joint-administrator, Andrew Blundell told Sprinter that the last-minute documentation received the day before the second creditors meeting was a proposed Deed of Company Arrangement from a related-party to the administration process.

A Deed of Company Arrangement is a binding document between a company and its creditors governing how the company’s affairs will be dealt with after the company has entered voluntary administration.

“The proposed Deed of Company Arrangement that has been received is effectively an offer of compromise from a related party on the outstanding creditor claims.”

“I told the creditors meeting on Friday that I will put a further report together as I did not have time to analyse the documentation prior to the meeting. As a result, I adjourned the creditors meeting by another two weeks and I will lodge the report at that time with my recommendations.”

Blundell confirmed that his analysis over the next two weeks will be to establish whether or not the Deed of Company Arrangement that has been proposed will provide a better return to creditors overall than is likely placed into liquidation. The plan is to issue an updated creditors report this Friday and re-open the adjourned meeting a week later.”

In his original creditors report, Blundell expected the company to be placed into liquidation.

“There has been no Deed of Company Arrangement proposals received from any party in relation to either of the Companies. This means Liquidation is the only realistic option for the Companies,” Blundell said at the time before the proposed Deed of Company Arrangement was submitted last Thursday.

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