Directors for troubled Sydney-based integrator, Applaud Services, are quietly confident their proposed deed of company arrangement will win over creditors and the company’s administrator.
Andrew Johnson from Johnsons Business Recovery was brought in as voluntary administrator on October 12. Applaud told <i>ARN</i> the appointment was driven by a large tax debt and undercapitalisation of the business when it split out from CyberNet Group in 2004.
Managing director, Ricci Danieletto, said several third parties had expressed interest in acquiring the business during the administrator process. Despite this, he anticipated the director’s bid would be accepted at the next creditors’ meeting, scheduled later this month.
“Our offer is extremely generous compared to external offers and liquidation and we are quietly confident,” he said. “We never lost faith in the feasibility of the business – we never considered the other options and trading out was always our intent.”
Danieletto flagged support from key suppliers and partners, including Ingram Micro and Commulynx, during the administration process. He also claimed the business was on track to regaining profitability.
“The ATO [Australian Taxation Office] is our biggest creditor – there are some other creditors, but we’re in good standing with them. We’ve had relationships with many of them for over five years and not had bad debts,” he said. “We’re keeping an open dialogue, especially with the current creditors, and they in return have been supportive, which is encouraging.”