Software Traction Limited
Appointment Type: Deed of Company Arrangement Appointment Date: 31/03/2011 ACN: 125719833
Appointee(s):
Max Donnelly, Robyn Duggan | Office: Sydney Case Contact: Laura Dryburgh Phone: +61 2 9286 9851 Fax: +61 2 9286 9888
Email: laura.dryburgh@fh.com.au |
Background Information:
On 8 February 2011, Max Christopher Donnelly and Robyn Louise Duggan were appointed Administrators of the Company on pursuant to Section 436A of the Corporations Act 2001.
On 15 March 2011 the creditors of the Company resolved to accept a Deed of Company Arrangement (DOCA). The DOCA was executed on 31 March 2011.
A first dividend to creditors was paid on 6 May 2011.
Current Status and Actions Required by Creditors:
The business and assets of the Company were sold to Certus Solutions Pty Limited (Certus) prior to the Administrators' appointment.
The Deed Administrators are progressing asset realisations including debtors and collection of the proceeds from the sale of the business to Certus.
Next Milestone and Estimated Timetable:
The DOCA provides for dividends to be paid on a quarterly basis. The next dividend was due for payment in early August 2011. That dividend payment has been deferred as a result of:
- Slower than anticipated debtor collections; and
- No recovery at this stage being made in relation to the sale of the business to Certus. The sale agreement entered into prior to the Administrators' appointment provided for a sharing of the profits once they exceeded the liabilities assumed by Certus for employee entitlements and pre-paid contract revenue.
A further update will be provided as to the timing of a dividend payment when possible.