Applaud directors win back company stewardship

Applaud directors win back company stewardship

Creditors approve a deed of company arrangement allowing directors to resume control going forward

Applaud directors have bucked the recent spate of company failures and regained control of the business from its administrators.

The integrator’s founder and director, Ricci Danieletto, said creditors weighed up various company options but voted the director’s deed of company arrangement as the best outcome for the organisation going forward.

The directors should gain control of Applaud from December 3. A creditors’ trust has also been established to allow Applaud to payback outstanding debts to its creditors.

“We wanted to make sure all creditors had the best outcome but take the business forward responsibly without pain to our cash flow in the short term,” Danieletto said. “It’s a good outcome for the business.”

Andrew Johnson from Johnsons Business Recovery, was brought in as administrator on October 12.

At the time, Danieletto told ARN the appointment was triggered by undercapitalisation of the business and a significant tax debt. Despite paying off over $400,000 in 18 months, the business was forced to call in voluntary administrators to deal with the issue.

“There were a number of factors – had it not been for the ATO’s position on our long-term liabilities, we wouldn’t have been placed in this predicament,” Danieletto claimed. “The transactional day-to-day business was healthy, and it didn’t take the administrators long to see that.”

Danieletto said the next step was to push its rebranding from Applaud IT to Applaud, and deliver new customer messaging to the market.

“Ironically, we had been undertaking remarketing activities with rebranding in the works just before we received the ATO letter, so we never got to execute on that,” he said. “We plan to pick up where we left off.

“We have been successful providing professional and managed services to our customers and we will continue to do that.”

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