One of the secured creditors of Synergy Plus, GE Capital, is set to receive a full payout.
Synergy Plus and its subsidiaries were put into voluntary administration following a request by GE Capital to entirely repay its financing facility. It was owed $4 million.
Richard Albarran, David Ingram and David Ross of Hall Chadwick, were appointed as administrators by the Synergy Plus board on March 17.
At the same time, GE called in receivers and managers to the main operating subsidiary, Synergy Plus Operations, appointing Quentin Olde, Andrew Schwarz and Michael Ryan of Taylor Woodings.
Receiver, Quentin Olde, said there were sufficient recoveries to pay GE out in full, but they have not received a payment at this stage.
The funds are being paid by the debtors of the company and the receivers and managers will be retiring.
“We’ll certainly be retiring as soon as practical in accordance with the legal obligations and requirements that we’re working on at the moment,” Olde said.
Administrators have also had discussions with HP regarding assets and funds to be forwarded to the vendor. It was also a secured creditor owed about $6 million.
According to administrator, David Ross, HP could potentially appoint Taylor Woodings as receivers and managers.
However, Olde couldn’t supply any further details on the matter.
HP said it was currently reviewing its position in relation to Synergy Plus, and any further queries should be directed to the administrator.
“We have had ongoing discussions with the second secured creditor, HP, who is claiming the debtors are subject to their charge, but we strongly dispute this and we may need to seek court directions in respect to that,” Ross said.
He said if the receivers didn’t retire it would cause issues in respect to proposing a Deed of Company Arrangement (DoCA).
So far, a DoCA has been executed for the holding company, Synergy Plus Limited, which will go through a re-capitalisation opportunity and will be convening a shareholder meeting, Ross, told ARN.
The AirData subsidiary is continuing to trade.
In the latest report to creditors and sighted by ARN, receivers, Taylor Woodings, discovered an additional surplus of $1.5 million to $2 million funds from debtor collections that wasn’t originally anticipated.
However, this amount is still to be verified by the administrators.
“Administrators are not able to provide an estimate of funds available due to the receivers and managers being in control of the books and records of the company,” the document stated.
The second creditor's meeting was adjourned for 45 business days to give the directors of the company an opportunity to propose a revised DoCA that will supply a better return to creditors than they would receive if the company was wound up.
Under the DoCA, creditors would be offered five per cent of shares in Synergy Plus Limited, under a Creditor’s Trust scenario, where Trustees would sell the shares and distribute the funds to the creditors of the company.
The Deed Proposal also indicates employees may receive payment of their entitlements in full, according to the document.