Saeco Australia creditors to receive 65 cents in the dollar

By James Wells

SYDNEY: The voluntary administrator of Saeco Australia, Deloitte, will recommend to creditors that the parent company of the Italian espresso machine manufacturer purchases 100 per cent of its local subsidiary with creditors to receive 65 cents in the dollar.

Deloitte partner Sal Algeri told Current.com.au this afternoon that a report will be mailed to all creditors tomorrow prior to the second creditors meeting next week.

“The Saeco business in Australia will continue,” Algeri said.

“The proposal is that Saeco International Group will buy the remainder of the company and turn it into a 100 per cent owned subsidiary. All employees will keep their job entitlements and in addition, the Saeco product will be fully supported with retail stock replenished.

“The administrators support the proposal by Saeco International Group to pay the creditors in the Australian business 65 cents in the dollar. If this proposal is approved by creditors, the transfer is expected to be completed by the end of April,” he said.

The second creditors meeting will be held on Wednesday 4 April at the State Library in Melbourne.

Prior to Saeco Australia entering voluntary administration on Tuesday 13 February, 40 per cent of the company was owned by local directors who are no longer with the business.

Following the first creditors meeting on 26 February, Algeri said that the response from retail customers was good and that stock continued to be sold with the business experiencing “significant sales”.