SurfStitch Administration Update

SurfStitch Administration Update

SurfStitch is in voluntary administration, and a number of the operating subsidiaries have already been sold.  Part of the process of administration is attending creditors’ meetings to vote on how the administration should proceed, including how any proceeds of sale should be distributed and how the remaining business will be managed.

Administration Proceeding

The Administrators continue to negotiate with all interested parties for a Deed of Company Arrangement.

Upon application by the Administrators, on 11 December 2017 the Court made orders in the Administration of SurfStitch (Administration Proceeding) extending the date for convening of the second creditors’ meeting to no later than 31 March 2018.

On 22 February 2018 the Court made orders in response to the Administrators application under s600H of the Corporations Act 2001 (Act), to permit group member claimants and any person with a subordinate claim (as defined by section 531A(2) of the Act) to vote at the second creditors’ meeting if:

  1. they can establish they have a claim; and
  2. they lodge particulars of proofs of that claim by the time specified in the notice convening the second creditors’ meeting.

Further orders were also made in respect of the notice requirements for the meeting. Please review the Administrators’ Circular to Creditors dated 6 December 2017, 21 December 2017 and 1 March 2018 and the Court Orders of His Honour Justice Brereton dated 22 February 2018 listed on our website for complete details.

The Administrators advise they intend to convene the second creditors’ meeting in the coming weeks and before 31 March 2018, once the terms of all deed of company arrangement proposals are finalised. The latest Circular to Creditors contains further details regarding how claimants, including group member claimants, can lodge their proofs of debt.

If you would like to join the McConnell Proceeding and submit your proof via our class action, please click the “register” link on our website and we will forward you relevant forms to join.