Kleenmaid Group creditors register their debt and elect committeesDOWNLOAD
24 April 2009: Yesterday in Brisbane around 200 Kleenmaid creditors attended the first meeting of creditors convened by Administrators, Deloitte Partners John Greig, Richard Hughes and David Lombe.
Joint Administrator, John Greig outlined the administration process and procedures to those in the room and those listening via teleconference and over the internet.
During the meeting Mr Greig explained that the Administrators’ main role was to investigate and report on the affairs of the Group. Also to form an opinion as to whether creditors should vote in favour of any proposed Deed of Company Arrangement or for liquidation at the next meeting of creditors.
Committees of creditors
Mr Greig stated that the creditors represented at the meeting voted to form committees of creditors in relation to the main Kleenmaid operating companies.
The Administrators made it clear to all customers at the meeting that there was no prospect of them receiving any goods that they have paid for. However, they should still register their claim as unsecured creditors of Kleenmaid so they can be kept fully informed about the progress of the administration and will be able to exercise their other rights as creditors.
“The meeting gave all creditors an opportunity to get a better understanding of their situation and raise any questions or concerns they had with the administration process.”
“Not surprisingly the main issue raised by creditors at the meeting related to stock and the frustration of those who still hoped to receive the goods they had paid for.”
“We also outlined the asset and liability position of the Kleenmaid Group from the investigations undertaken to date. It was made clear to all creditors that there is likely to be a significant shortfall between the realisable value of the Kleenmaid assets and the amount creditors are owed.”
Mr Greig said, “Unfortunately at this stage we do not foresee that the available assets of the Kleenmaid Group will provide any return to unsecured creditors including customers. This will create significant distress and hardship for these customers as was evident at the meeting.”
Mr Greig said that details of the elected committee members will be made available on the Deloitte website shortly.
Mr Greig plans to provide their full findings in a report to creditors which will be sent to all known creditors prior to the second creditors meeting to be held in May 2009.
Based on initial figures (subject to change) there is approximately $76m owed to creditors of the Kleenmaid Group.
The breakdown is as follows:
Secured creditors (banks) = $28m
4,000 customer deposits = $27m
2,800 trade creditors and suppliers = $16m
Landlords and warehouse operators = $2m
Employees = $3m
It should be noted that the appointment of the Voluntary Administrator applies to 14 separate entities in the Kleenmaid Group including:
|Company||Australian Company Number|
|Kleenmaid Corporate Pty Ltd||ACN 125 837 943|
|Lifestyle Appliance Corporation Pty Ltd||ACN 125 839 189|
|Lifestyle Appliance Sales Pty Ltd||ACN 125 842 131|
|Kleenmaid Property Pty Ltd||ACN 125 839 849|
|EDIS Service Logistics Pty Ltd||ACN 077 845 151|
|Kleenmaid Customer Solutions Pty Ltd||ACN 115 837 726|
|Bizco Retail Pty Ltd||ACN 123 492 811|
|Kleenmaid Holdings Pty Limited||ACN 051 042 749|
|KM Intellectual Reserve Pty Ltd||ACN 125 842 024|
|Orchard KM Pty Ltd||ACN 001 905 808|
|Kleenmaid Retail Pty Ltd||ACN 077 845 179|
|Manlyvale Pty Ltd||ACN 116 604 767|
|Kleenmaid Pty Limited||ACN 125 841 858|
|Kleenmaid Appliances Pty Limited||ACN 127 973 086|
NB: For further general information on the voluntary administration process, please refer to: Australian Securities and Investments Commission website.