Trade creditors have approved the Deed of Company Arrangement (DOCA) submitted by FVA Group for the acquisition of Fairview. The creditors voted overwhelmingly to accept the independent resolution by Grant Thornton that FVA Group’s DOCA was in the creditors’ best interests.
As part of the fully funded FVA Group package (DOCA), all unsecured trade creditors will receive a full 100 cents on the dollar. The DOCA will also protect the 57 Fairview staff whose jobs and entitlements are saved by the package.
This development follows a forensic 15-week administration event with Grant Thornton confirming that two other serious bids of around $30 million had been received for the Fairview business. However, neither included the job saving guarantees that the FVA Group’s offer promised.
The FVA Group’s DOCA accepted by creditors covers:
- Business continuity
- Pay every company trade creditor certainly and in full (100 cents on the dollar)
- Save all of the company’s 57, mainly regional jobs
- Fund a creditor liability trust
- Subsequently allow the business to trade seamlessly and focus on growth.
Details of the proposed creditor liability trust reveal a $1 million cash fund contribution to provision a prior class action as well as provide 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.”