13 Dec Subsidiaries of an ASX Listed Company
Capability: Insolvency, Restructuring & Turnaround
Appointment: Voluntary Administration followed by Liquidation
Subsidiaries of an ASX listed Company that operated high-end duty-free retail outlets for inbound Chinese tourists. The business had built a reputation as a leading retailer of cosmetics, jewellery and health, well-being and wool products servicing the inbound Chinese tourism market in Australia for over 15 years with retail stores located in Sydney, Melbourne and the Gold Coast and approximately 100 staff at its peak. The business was significantly impacted by the Covid-19 pandemic, and its operations were no longer viable.
The majority (if not all) of the employees did not speak English and were having difficulty in understanding the voluntary administration process and their rights as employees. Multiple Deed of Company Arrangement (DOCA) Proposals to restructure the company and completing stakeholders’ interest. The matter was made complex there were Pooled DOCA’s involved.
Following our appointment as voluntary administrators we engaged the employees and held them to understand the external administration process and their rights as employees, by communicating with them in Chinese were possible. This included telephone conversations, written updates, and meetings. In addition to this we also concurrently had one of our senior staff provide translations during all formal meetings.
Had multiple meetings with various parties regarding multiple DOCA proposals. Presented a Pooled DOCA to the group of creditors and explaining the benefits and risks of the proposals. Ultimately, a class of creditors voted against the Pooled DOCA and the companies were placed into liquidation. This assisted with the ASX Listed entities strategic goal to exit the tourism section.
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