Saved: Spring Gully gets the all clear
Adelaide food producer Spring Gully Foods has come out of administration and will pay its outstanding debts in full.
Around 300 creditors met today and approved a Deed of Company Arrangement (DOCA) that released the company from administration.
The company will resume operating under family control from first shift tomorrow.
The DOCA was signed by Spring Gully’s directors and the administrator, Austin Taylor of Meertens, immediately after the meeting, finalising the administration process and handing the company back to its directors.
Under the terms of the DOCA, all creditors will be paid 100 cents in the dollar, with an initial down payment and regular quarterly payments until the debt is finalised.
The payments will be funded through Spring Gully’s normal business operations, which have returned to profitable levels as a result of continued strong sales, the support of retailers and changes to the company’s business operations.
“Since we entered voluntary administration in April, we have received outstanding support from the public and major retailers which has boosted orders and sales to the stage that we had to introduce a second shift in May,” the family owned company’s managing director Kevin Webb said.
“The level of support we have received has been fantastic and has now been maintained for a significant period of time.
“Providing we can maintain this level of support, and we will be working hard to ensure this continues, we are confident that we now have a bright future.”
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Austin Taylor said the proposed agreement was an outstanding result for creditors and the company.
“It will give creditors 100 cents in the dollar, which is highly unusual in these circumstances,” he said.
“The public show of affection for Spring Gully after they entered voluntary administration stamps this as one of the most unique and successful administrations I have been involved in.
“It also underlines that administration need not be a one-way journey to liquidation, providing administrators are called in early enough.”
