The second meeting of creditors on Friday 23rd February, of Starleaton Holdings and SDS Bidco (in external administration), has been informed by Administraters Cathro Partners, that a Deed of Company Arrangement (DOCA) has been received at the last minute and needs time for examination.
A majority of creditors must approve a DOCA (image: LegalKitz)
A Deed of Company Arrangement, if accepted by creditors, sometimes allows for a better return to unsecured creditors than a liquidation. The terms and conditions can be complex, so the Administrator has adjourned the meeting for 2 weeks while the ramications are assessed.
For a DOCA proposal to succeed it must be voted upon by the majority of creditors representing at least 50% of total debts of a company.
In the meantime, two more printers have come forward claiming that they pre- paid to Starleaton, for equipment that was never delivered. The joint estimated amount for the latest two claimants appears to be in the region of $250,000. These claims eventuted following the publication of a similar experience by Allpride Signs of Newcastle, NSW.
More on this in next Thursday's newsletter, 29th February.
