National Buildplan Group given new lease of life after vote
The move has prevented the NSW-based builder entering liquidation despite holding debts estimated at more than $60 million to employees and unsecured creditors.
The vote at Thursday's creditors' meeting saw 231 in favour of the arrangement, 49 for liquidation and seven abstentions.
Under its terms, control of the company will be returned to director William Wheeler. He is required to realise $5.125 million to pay priority creditors - namely employees - administration costs, and a "minimum" dividend for unsecured creditors.
The money will be obtained from a profit share from two ongoing construction contracts and debt recoveries, as well as a director's contribution of $600,000, a $300,000 payment for administration costs, and the sale of $190,000 of plant and equipment to Mr Wheeler.
Administrators BRI Ferrier estimate unsecured creditors, owed up to $58 million, will likely receive only 0.08¢ to 5.62¢ in the dollar.
The vote was controversial, with some creditors upset Mr Wheeler sent out completed proxy votes in his favour to creditors before the meeting. Mr Wheeler's pay of $6000 a week provided by BRI since the collapse was also a source of anger.
cvedelago@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Creditors voted to establish a deed of company arrangement (DOCA), which has prevented NSW-based builder National Buildplan Group from entering liquidation and gives the company a chance to be resurrected under the DOCA terms.
At the creditors' meeting, 231 voted in favour of the deed of company arrangement, 49 voted for liquidation and seven abstained.
Control of the company will be returned to director William Wheeler under the terms of the deed of company arrangement.
William Wheeler is required to realise $5.125 million to pay priority creditors (mainly employees), cover administration costs and provide a 'minimum' dividend for unsecured creditors.
The funds are to come from a profit share on two ongoing construction contracts, debt recoveries, a $600,000 director’s contribution, a $300,000 payment for administration costs, and the sale of $190,000 of plant and equipment to Mr Wheeler.
Administrators BRI Ferrier estimate unsecured creditors — who are owed up to $58 million — will likely receive only between 0.08¢ and 5.62¢ in the dollar.
Some creditors objected because Mr Wheeler sent completed proxy votes in his favour to creditors before the meeting, and there was anger over his pay of $6,000 a week while BRI Ferrier administered the company after the collapse.
The administrators handling the process and providing estimates for creditor recoveries are BRI Ferrier.
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