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Ovato creditors meeting update

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.

Stuart Carson

magazine distribution

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