The deed of company arrangement put forward by an entity associated with Vicars will secure a future for the business, which fell into the hands of administrators last November amid declining sales and high rental costs.
Unsecured creditors will receive 36 – 58 cents on the dollar under the deal, which was endorsed by administrators Vaughan Strawbridge and Glen Kanevsky from Deloitte Restructuring Services last week.
“Based on our recommendation, creditors have voted to support the Vicars proposal. It will deliver a better outcome compared to other offers received, including the best possible financial return as well,” Strawbridge said in a statement on Thursday.
“Just as importantly, a recapitalised OrotonGroup business means continued employment for staff across the operations.”
Under the proposal 100 per cent of the shares associated with OrotonGroup limited would transfer to the Vicars entity.
The deal still requires federal court approval, which will be sought in the next week. as continuity of business for suppliers and landlords.”
Vicars is co-CEO of Caledonia Funds Management, which has a 18.2 per cent stake in Oroton and is a major creditor.
The Vicars proposal came out on top of 39 other offers to purchase the business, while Vicars has been in discussions with landlords in recent months to secure a more favourable future for the business.
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