|Appointment type||Joint & Several Voluntary Administrators|
|Appointment date||4 July 2019 to current|
|Appointees||Hayden White, Wayne Rushton and Stephen Parbery|
|Companies subject to Adminstration||Berrington Care Group Pty Ltd ACN 138 074 352
Berrington Group Pty Ltd ACN 609 745 726
|Contact phone||+61 8 9263 4807|
On Thursday, 4 July 2019, Hayden White, Wayne Rushton and Stephen Parbery of KPMG were appointed as Joint and Several Voluntary Administrators (“the Administrators”) of Berrington Care Group Pty Ltd and Berrington Group Pty Ltd (collectively “the Companies”) by its common sole director.
Voluntary administration is a statutory process designed to provide for the business, property and affairs of an insolvent company to be administered in a way that maximises the chances of the company continuing in existence, or if that is not possible to provide for a better return for a company's creditors and members than if the company was immediately wound up.
The appointment of administrators followed the maturity of a debt facility held by the Companies that was unable to be repaid or otherwise refinanced to ensure the ongoing solvency of the Companies.
The Administrators are currently and will continue to work with the Companies’ senior management team, secured creditors, suppliers and the Department of Health to ensure that the quality of care is maintained and that the health and wellbeing of care recipients is protected whilst a process is undertaken for a sale of the business or recapitalisation proposal is being developed, and will maintain regular contact with all key stakeholders throughout the process.
During this period, the Administrators intend to continue to operate the business as usual.
On 5 December 2019, the Companies entered into a business sale agreement with The Bethanie Group Inc (ABN 60 992 323 648) (Bethanie) for the proposed acquisition by Bethanie of the aged care business of the Companies (Transaction). If the Transaction completes, Bethanie will take over ownership and control of Berrington Como and Berrington Subiaco. All residents will be able to remain in those facilities and Bethanie will take on the responsibility of providing these residents with accommodation and care in accordance with the Aged Care Act 1997 (Cth) (Act).
If the Transaction completes, the following will occur:
Pending completion of the Transaction, we will continue to operate the Berrington Group on a business as usual basis and this includes the continuation of all services that residents currently enjoy.
On 22 July 2019, the Administrators filed an application with the Supreme Court of Western Australia under sections 439A(6) and 447A(1) of the Corporations Act 2001 (Act) to extend the convening periods to hold the second creditors meetings of the Companies. Under section 439A of the Act, the current convening periods of the Companies are due to expire on 1 August 2019. On 25 July 2019, the Administrators received the requested extensions for the convening periods up to and including 1 November 2019 (i.e. three month extension).
On 28 October 2019, the Administrators filed a further application with the Supreme Court of Western Australia under sections 439A(6) and 447A(1) of the Act to further extend the convening periods, and on 29 October 2019, the Court made Orders extending the convening period for the second meetings of creditors up to and including 14 February 2020.
The Administrators' opinion is that this additional time is required for a number of key reasons, including to enable the Administrators to complete the sale of Berrington’s business with the preferred bidder, to continue liaising with the Australian Government Department of Health regarding the Companies, and to enable the Administrators to complete their investigations.
The Administrators have given notice that a concurrent first meeting of creditors will be held on Tuesday, 16 July 2019, in accordance with section 436E of the Corporations Act 2001 (“the Act”).
The purpose of this meeting was to allow creditors to determine:
The Australian Securities & Investments Commission provides resources on insolvency for directors, practitioners, employees, creditors and investors.