Issued today, by the administrator:
The first meeting of creditors for Ovato Limited was held this afternoon.
Regarding the situation at Ovato, a spokesperson for the Administrators said:
- The Administrators are continuing to trade the business as a going concern while they run a sale and recapitalisation process.
- There has been excellent support from customers and employees, and the Administrators continue to work with the suppliers.
- The sale process has commenced. There has been a number of expressions of interest, and the Administrators are working through those with the interested parties. Binding bids are due by the 11th of August.
- The Administrators are looking for a buyer as soon as possible, as the sooner the business has a long-term owner the better off all stakeholders will be.
- As part of their role, the Administrators are investigating a number of matters before reporting back to creditors (next creditors meeting scheduled to be issued on 17 August), including:
- The historical footprint of the company and legacy costs the company has been burdened with.
- The claims of various suppliers.
- The activities of the Group leading up to the appointment.
- The impact of the pandemic.
- A number of transactions involving the sale of divisions or businesses in recent times.