By James Wells
SYDNEY: Creditors of Retravision NSW voted this afternoon to accept a deed of company arrangement (DOCA) which will see the group effectively split in two and ‘migrate’ permanently to either the Retravision Queensland or Retravision Vic-Tas companies.
In a statement distributed this afternoon by Retravision Australia, under this arrangement, a Deed Fund will be created by Retravision Queensland and Retravision Victoria/Tasmania contributing 0.75 per cent of migrating purchases to a fund controlled by the Voluntary Administrator for the benefit of creditors. This fund will continue to operate for a period of three years.
Retravision Australia chief executive officer, Keith Perkin, said this means approved stores that migrate will be able to immediately access much needed stock under Retravision’s preferential arrangements and take full advantage of the peak Christmas retail season.
”Consumers will benefit also as their local Retravision store is restocked with all the latest electrical products in time for Christmas,” Perkin said.
”While this outcome is a positive one for Retravision and its suppliers, it is a pity a small number of store owners chose to leave the Group during this period of uncertainty.
"We will immediately commence the process of rebuilding our network to ensure we remain a strong and viable national retailer.
”If anything, the events of the last few weeks and the outcome today have left us a much more united and cohesive group for the future,” Perkin said.
Voluntary administrators to Retravision NSW, Grant Thornton partners Paul Billingham and Trevor Pogroske said the Migration Deed of Company Arrangement (DOCA) presents stability for store owners and a greater degree of certainty of return for creditors than other options reviewed.
Billingham said any return to creditors in a liquidation would have been contingent upon recoveries from unfair preference and insolvent trading actions.
The receiver and manager of Retravision NSW, Deloitte partner, Peter Yates said “we have been working closely with the administrators, Queensland and Victoria Retravision to resolve supply arrangements and now the migration of stores.”
The administrators confirmed they will be writing to all creditors before Christmas in order to approve their debts.
Billingham said a first distribution to unsecured creditors is expected by March 2007.