Kleenmaid Group Administrators confirm Thursday 23rd April for creditors meetingDOWNLOAD
Contact: Johnny Sollitt-Davis (media enquiries only)
Corporate Affairs & Communications
Customers asked to immediately lodge their claim and provide proof of debt
18 April 2009 – Providing a further update on the administration of Kleenmaid Group Joint Administrator John Greig said:
“Due to the fact that the vast majority of goods are stored at a third party warehouse provider with multiple sites all over Australia, we are still trying to confirm Kleenmaid stock levels. The warehouse provider is owed in excess of $2m and has claimed a lien over all stock.”
This means that they will not release any stock to any party, including the Administrators or customers, until acceptable arrangements have been reached with them in relation to their outstanding debt.
“We have been working intensively over the past few days to address the status of customer ownership claims on stock that was either paid in part or in full. This is a huge task given the number of customers involved and is going to take some time to complete.”
Mr Greig reaffirmed that the Kleenmaid terms and conditions of sale for new appliances means that ownership of the goods does not pass to customers until both fully paid and delivered.
Customers should register their claim
Mr Greig recommended that all those customers that find themselves in this very distressing position should immediately lodge their claim with the Administrators if they have not already done so as outlined in the Circular to Creditors (see link below).
“Should these customers also wish to be eligible to vote at the first creditors meeting on Thursday next week in Brisbane they should complete the proof of debt form (and the proxy form if they cannot attend the meeting in person) and send it to the address as outlined in the Circular to Creditors by next Wednesday 22 April. There will be webcast and teleconference facilities available for those who cannot attend in person. Details can be found in the Circular to Creditors (see link below).”
“If creditors have not received the Circular a copy can be downloaded from the Deloitte website,” he said.
“Although we initially thought we’d be able to supply some limited amount of stock to existing franchisees for sale without warranty this has not been possible.”
“We therefore have not sent any stock to franchisees for sale since appointment,” said Mr Greig. “Any stock being sold by franchisees since we were appointed can only be their existing showroom stock which franchisees own.”
Mr Greig confirmed that none of the Kleenmaid owned stores have traded since his appointment.
“It is our responsibility to prepare a detailed report to creditors on the financial position of the Kleenmaid Group together with our recommendations as to whether it is in the interests of creditors to vote to place the group into liquidation or support a Deed of Company Arrangement proposed by the directors.”
“This report is required to be sent to all creditors prior to the second meeting of creditors which will occur next month – and we are fully committed to achieving this.
The first creditors meeting is scheduled for Thursday 23 April in Brisbane – at this meeting the creditors have the opportunity to appoint a committee to represent them to assist the Administrators.”
Mr Greig stated that he has not received any details from the directors in relation to their proposed Deed of Company Arrangement at this stage.
Click here to view the first circular to creditors:
NB: For further information about the voluntary administration process, please refer to: http://www.asic.gov.au/insolvencyinfosheets
All creditors and customers with queries should contact the Administrators by email:
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