Hi there,
I was a shareholder and creditor in a company that went into voluntary administration. The entire VA process smells of a phoenix deal. The directors bought back the company for a steal wiping out all shareholders and creditors after putting forward a DOCA.
A majority of creditors voted in favour of the DOCA but the votes were close...
Except for a new development in that the creditors have now received a new notice that the terms of the DOCA are very different and we all have to prove out debt position again.
I believed that the DOCA ultimately executed should, under s 439C, be in terms of the deed “specified in the resolution” that was approved at the creditors meeting.
What happens if the terms of the executed document are different to those approved at the meeting?
How on earth can the Administrators permit such action? Can we report them to ASIC?
What action can creditors take if the terms of DOCA change after they were voted on?
I was a shareholder and creditor in a company that went into voluntary administration. The entire VA process smells of a phoenix deal. The directors bought back the company for a steal wiping out all shareholders and creditors after putting forward a DOCA.
A majority of creditors voted in favour of the DOCA but the votes were close...
Except for a new development in that the creditors have now received a new notice that the terms of the DOCA are very different and we all have to prove out debt position again.
I believed that the DOCA ultimately executed should, under s 439C, be in terms of the deed “specified in the resolution” that was approved at the creditors meeting.
What happens if the terms of the executed document are different to those approved at the meeting?
How on earth can the Administrators permit such action? Can we report them to ASIC?
What action can creditors take if the terms of DOCA change after they were voted on?