Darrel Jarvis's Chinese-backed buyout of the operations of failed Palandri Wine Group has won the approval of the administrators in a complex deal thought to be worth at least $30 million.
Darrel Jarvis's Chinese-backed buyout of the operations of failed Palandri Wine Group has won the approval of the administrators in a complex deal thought to be worth at least $30 million.
Mr Jarvis and another former Palandri director Chris Brown will take non-executive roles with Global Wine Holdings Pty Ltd, a vehicle of Chinese entrepreneur Xibo Ma which struck the agreement with Palandri administrators, beating 14 other proposals.
But the deal has come at a big cost to Mr Jarvis who has sold his house as part of the arrangements negotiated with Gary Doran and other administrators from Deloitte for a deed of company arrangement which will be put to creditors in late May.
Global Wine was Palandri's second biggest stakeholder before the collapse in late February.
Mr Xibo, whose links to Western Australia are also thought to include Mid West iron ore miner Murchison Metals Ltd, is understood to have committed the bulk of the capital required for the purchase while he reportedly required Mr Jarvis to make a significant investment as part of the deal.
"Mr Doran advised that Mr Xibo Ma had insisted that as part of making this significant investment he required Mr Jarvis ... to make a financial and personal commitment to the success of the new venture," the administrators said in a statement.
According to Deloitte, Mr Jarvis has contributed $1 million as well as assigning his Palandri MIS interests to the benefit of creditors and waiving a $2 million claim as a secured creditor.
"As part of the Global Wine Holdings proposal Mr Jarvis has assigned all his interest in the Palandri managed investments schemes and sold his family residence with the equity and some additional loan funds being contributed for the benefit of creditors," the administrators said.
Other directors, possibly Mr Brown, are also contributing to the Global Wines proposal and agreed to assign they will not make claims as unsecured creditors under the deed.
"The contributions of (Mr) Jarvis and other directors improved the return to secured creditors by at least $2.5 million and will provide at least a further $1 million and other assets by way of the proposal for the deed of company arrangement."
