BackgroundAppliance delivery. Hand truck and fridge. 3d

  • Family-owned refrigerator manufacturer based in Toowoomba
  • Control was recently passed to the next generation by the original owners
  • Business was badly affected by the GFC and the 2011 floods
  • Over 300 creditors with debts exceeding $12 million

The Challenge

  •  The directors were concerned about the solvency of the company as well as the associated director liabilities.
  • The directors were also concerned about personal guarantees given to suppliers

How Pilot Helped

  • We eased the directors’ burden. Once formal appointment was completed, the directors no longer had to personally deal with the creditors
  • As the appointed Liquidators we recovered the assets for the benefit of creditors

Outcomes

  • Various components of the business was sold (plant & equipment, finished goods, spare parts, intellectual property)
  • Upon finalisation of the liquidation, the affairs of the company are fully wound up
  • A dividend may be paid to creditors if there are sufficient funds available
  • Directors have a sense of finalisation once liquidation is completed and company will be deregistered shortly after

For more information contact Nigel Markey or Ann Fordyce from our Restructuring division on (07) 3023 1300.