For those who have been following our coverage of the administration of aluminium facade and ACM manufacturer Fairview Architectural, there was understandable skepticism of the ability to deliver on promises and proposals. It is now our happy duty to inform you that the DOCA is approved and a rare, if not unique, subheading of 'Creditors get 100 cents in the dollar, all 57 jobs saved,' is the order of the day.
|Melbourne's Lacrosse Tower, has been rectified using Fairview's Vitracore G2 BCA code-compliant cladding|
If there was a 'how to handle a corporate administration 101' it must surely be Grant Thornton's four-month governance of Fairview Architectural, and FVA Group's rescue package. Not only has the company successfully resurfaced under FVA Group and its DOCA, but in the background, several buildings have been reclad in building-code compliant, fire-resistant ACP such as Vitracore G2. Additionally, a $1 million escrow fund has been established as a buffer provision for the on-going class action, creditors will be paid out in full and 57 good Australians and their families retain their jobs and entitlements.
Yesterday's company statement follows:
"At a meeting held yesterday (20.10.20) trade creditors voted overwhelmingly to accept the independent resolution by Grant Thornton that a Deed of Company Arrangement (DOCA) submitted by FVA Group was in creditors’ best interests. Uniquely, all unsecured trade creditors will receive a full, 100cents in the dollar under the FVA Group package.
Another key group whose interests were fully protected by the FVA Group DOCA, was the 57 Fairview staff whose jobs and entitlements are saved by the package.
After a forensic, 15-week administration event, Grant Thornton confirmed that two other serious bids of around $30 million had been received for the Fairview business, but neither included the job saving guarantees which the FVA Group’s offer pledged.
Key points of the fully funded FVA Group package (DOCA), accepted by creditors includes:
- Business continuity
- Pay every company trade creditor certainly and in full (100 cents in the dollar)
- Save all of the company’s 57, mainly regional jobs
- Fund a creditor liability trust
- Subsequently allows the business to trade seamlessly and focus on growth.
Details of the proposed creditor liability trust reveal a $1million cash fund contribution – to provision a prior class action – plus access to the old company’s insurance policies.
CEO of FVA Group, Greg Stewart, commented:
“It’s been a challenging time for the Fairview team but I commend them and the administrators for all their efforts and forbearance. We are grateful, too, for the big vote of confidence from the creditors and our supply chain which allows FVA Group to robustly take this business forward into a new era.”