EziBuy Deed of Company Arrangement adopted in SurfStitch Administration

EziBuy Deed of Company Arrangement adopted in SurfStitch Administration

4 April Second Creditors’ Meeting

On 4 April 2018, SurfStitch creditors voted to adopt the EziBuy proposed Deed of Company Arrangement (EziBuy DOCA).

The mechanics of the EziBuy DOCA will be the subject of future directions by the Court as early as 3 May 2018.

Orders are expected to be made by Justice Stevenson at that time to finalise the case against SurfStitch, and may include orders for the method and procedure by which settlement amounts will be paid to class action claimants.

The EziBuy DOCA comprises two main parts of interest to class action members:

  • cash – between $3.4 million and $4.3 million; and
  • convertible notes intended to be convertible into shares in the new merged EziBuy/SurfStitch entity estimated to be worth between $6 million and $20 million. The conversion must occur inside 3 years.

Details of the proposal are contained in the administrators’ report to creditors dated 16 March 2018 found on this website on the home page.

Glenn McGowan QC

Partner & Chief Counsel

Rebecca Di Rago

Lawyer

VIC-Surf-Stitch@gadens.com

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.