Unanimous vote for Waimea Contract Carriers Limited to trade
Monday 3 August 2015
Unanimous vote for Waimea Contract Carriers Limited to trade on
The creditors of Waimea Contract Carriers Limited (Administrators Appointed), a log transport business operating in Nelson and Marlborough, today voted in favour of a repayment arrangement that will see the company trade on.
“We think today’s outcome is really positive for all stakeholders. The ongoing support of employees, suppliers, creditors and customers has allowed the company to take the required steps to return to profitable trading.
“These steps have ultimately enabled the company to propose a plan to frozen creditors for repayment in full while the business trades on,” says Administrator and PwC Partner John Fisk.
Following a period of adverse trading conditions, PwC Partners John Fisk and Richard Longman were appointed Administrators to the business on 30 March 2015, at which time all debts of the company were effectively frozen.
During the administration, the PwC team has worked closely with the directors and other key stakeholders, to rehabilitate the business.
Mr Fisk adds, “A key factor in today’s result was the strong support that the company received from its customers, both during the administration and in confirming future supply arrangements.”
At today’s watershed meeting of creditors, creditors were able to vote to decide the future of the Company. The Administrators proposed a deed of company arrangement (DOCA) which sets out the terms and conditions for repayment of 100 cents in the dollar to all frozen trade creditors. Most creditors will be paid in full within the next month, while a smaller number of larger creditors will be paid out progressively over time through November 2018.
The DOCA was unanimously approved by creditors. Once executed, the administration will end.
“We intend to execute the DOCA shortly at which time the directors resume control of the company. PwC, as Administrators, will continue to have a monitoring role during the repayment period,” concludes Mr Fisk.
Waimea Contract Carriers Limited Director Jenny McIntyre said, “It has been very challenging, but we have now taken a big step forward. The support and loyalty from our staff and everyone else has been overwhelming. We are excited about the future.”