BOAT builder Riviera will pay its current and former employees full entitlements totalling $3.5 million and a dividend to unsecured creditors, following a meeting today in Brisbane.
Creditors agreed on 1.7c in the dollar.
The completion of a Deed of Company Arrangement (DOCA) will bring to an end the official appointment of voluntary administrators.
The luxury boat builder went into receivership in May last year.
Receiver Deloittes and Riviera management will continue to improve and grow the Riviera business enabling it to trade in its own right, outside of the formal administration process.
“Everybody knew today was coming and we have had overwhelming support from our staff and suppliers,” says Riviera chief executive John Anderson.
“Almost all of our trade creditors are still trading with us today. They could have elected a long time ago to stop trading with us, but they could see that this was going to be the best solution.”
The agreement was reached with full support from creditors for the DOCA covering five trading entities within the Riviera Group of companies - Riviera Marine (INT.) Pty Limited; R Marine Pittwater Pty Limited; Riviera Runaway Bay Pty Limited; Riviera Coomera Pty Limited; and Riviera Marine (MFG) Pty Limited.
The eight remaining, non trading entities of the Riviera Group are no longer required given the corporate rationalisation and restructuring of the group and so are not included in the DOCA.
Under the terms of the DOCA, former employees of the Riviera DOCA companies will receive all of their unpaid wages, superannuation, annual leave and any relevant redundancy payment. Current Riviera employee’s entitlements will continue to accrue and be available to those employees in the ordinary course of business.
“Riviera coming out of administration also removes any possibility of the liquidation of the legal entities that were previously under administration. This creates even greater security and confidence in Riviera moving forward,” says Anderson.
“As we enter a new year, Riviera is powering into 2010 with strong sales (and) realistic global inventory levels. It is actively engaged in multiple new product development projects for release at major boat shows this year.”
Entitlements will be paid by April 30, 2010 and funds will be paid to the administrators by June 30 to enable a dividend to be paid to unsecured creditors.
Anderson told goldcoastbusinessnews.com.au that Riviera has sold two new luxury boats every week for the last 12 months.
“We are certainly in a strong position to maximise the opportunities of the economic recovery in 2010. Riviera will continue to excite the market again this year,” says Anderson.
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