Creditors owed more than $16 million by Waimea Contract Carriers Limited, which has been placed into administration, have voted in favour of a repayment arrangement that will see the log transport business trade on.
PwC partners John Fisk and Richard Longman were appointed administrators to the business on 30 March 2015, at which time all debts of the company were effectively frozen.
The administrators say that the support of employees, suppliers, creditors and customers has allowed the company to take the required steps to return to profitable trading.
“These steps have enabled the company to propose a plan to frozen creditors for repayment in full while the business trades on,” says administrator and PwC partner John Fisk.
During the administration, the PwC team has worked closely with the directors and other key stakeholders, to rehabilitate the business.
At yesterdays meeting with the administrators, the creditors were able to vote to decide the future of the Company.
The administrators proposed a deed of company arrangement (DOCA) which sets out the terms and conditions for repayment of 100 cents in the dollar to all frozen trade creditors.
Most creditors will be paid in full within the next month, while a smaller number of larger creditors will be paid out progressively over time through November 2018.
The DOCA was unanimously approved by creditors. Once executed, the administration will end.
“We intend to execute the DOCA shortly at which time the directors resume control of the company. PwC, as Administrators, will continue to have a monitoring role during the repayment period,” says Fisk.
