23/11/2021 - 11:47

Oxley ups Pindan offer to $14.3m

23/11/2021 - 11:47

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Pindan’s Singaporean owner has upped its deed of company arrangement proposal to $14.3 million, lodging the third and final offer ahead of the creditors meeting next week.

Oxley ups Pindan offer to $14.3m
Oxley Holdings confirmed it had presented the revised proposal to administrators of EY today, a substantial increase on its previous offers of $12.3 million and $7.5 million. Photo: David Henry

Pindan’s Singaporean owner has upped its deed of company arrangement proposal to $14.3 million, lodging the third and final offer ahead of the creditors meeting next week.

In a statement released this morning, Oxley Holdings confirmed it had presented the revised proposal to administrators of EY today.

The proposal represents a substantial increase on its previous offers of $12.3 million and $7.5 million.

Administrators are expected to present the offer to creditors of the collapsed construction company in the coming days, with a meeting to decide the future of the companies scheduled for next week.

The revised proposal is expected to support the payment of all 235 of the group’s employees, provide a payment to the liquidation entities of $1.5 million, a payment of $1,500 for trade creditors and a dividend to larger creditors.

If endorsed by creditors, Ankura senior managing director Quentin Olde said the DOCA could facilitate payments quickly without the need to wait for further litigation and recoveries by the liquidators. 

“This is a great outcome for those most affected by this collapse, namely the employees and nearly 50 per cent of creditors, made up of small and family businesses, trades and suppliers, and sole traders who will be paid in full,” he said.

“The creditors, including the employees, need to turn up in numbers to vote in favour of the DOCA proposal at the creditors meeting next week so the administrators can implement the proposal.”

Mr Olde said the proposal was understood to already have the support of a number of major creditors, employees and directors. 

The second creditors meeting was adjourned earlier this month after Oxley lodged an amended DOCA at the eleventh hour.

That proposal came after administrators recommended rejecting the DOCA in favour of the winding up of Pindan Contracting, a decision which would have given them assent to pursue Oxley for damages in connection with claims it would support the group to remain solvent until October 2021.

EY was appointed as administrators of three Pindan entities and liquidators of a further nine on May 18, after Business News revealed the company was facing financial trouble.

The multi-disciplinary construction group collapsed owing more than $97 million, leaving the business's 80 active projects, 280 staff and hundreds of subcontractors and trade suppliers in limbo.

Business News is a registered creditor of Pindan in relation to a small advertising contract.

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