Investors come to Wakefield Transport’s rescue
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Three individual investors have today received creditor approval of a restructuring proposal which will see them become major shareholders of Wakefield Transport Group of companies enabling the Mildura-based business to continue as a going concern.
The investors are directors of Seaway, a group of existing shipping and logistics companies based in Melbourne, Sydney, Brisbane and Adelaide.
The Deed Administrators of the Wakefield Transport Group have accepted a proposal to restructure the business by way of an equity injection.
The three entities will purchase 57% of Wakefield Transport Group shares and form a new Board of Directors which will include Ken Wakefield. The new directors will be Craig McElvaney, Peter Wallace and Paul Szumowski.
The creditors of the Wakefield Transport Group accepted this proposal at meetings held this morning in Mildura.
The legal documents to effect the restructuring proposal are in the process of being finalised and the proposed date for the restructuring to take effect is 1 March 2009.
Simon Wallace-Smith, Deloitte Corporate Reorganisation Group partner, said he had hoped for a better result for the creditors of Wakefield Transport group but still considers this to be a good outcome.
“Under the proposal, the business will be allowed to continue as a going concern, the great majority of employees will not be affected, which will benefit the surrounding community, and unsecured creditors will receive a dividend,” Mr Wallace-Smith said.
“I’m pleased we have reached a positive outcome. It means a lot to Mildura and the surrounding district to have the Wakefield Transport Group continuing to trade. This could not have been achieved without the overwhelming support received from staff, creditors and customers over the past 10 months.”
For further information:
Partner, Corporate Reorganisation Group
Tel: +61 (0) 3 9208 7614
Mobile: 0417 342 630