Due to the need to resolve all aspects of the receivership of Glenbelle in the shortest possible timeframe, the Receivers determined that the most appropriate way to realise the Management Lot was by way of public auction which was held on 3 February 2011.
Following the auction, the Receivers and Managers continued to work with the successful bidder at the auction (the “Initial Purchaser”) to proceed to settlement. This involved the satisfaction of certain conditions precedent contained within the Initial Purchaser’s contract.
Shortly after the public auction, Glenbelle entered into a further contract for the sale of the Management Lot with Golden Heritage Golf Pty Ltd (“GHG”)(the “GHG Contingency Contract”) which was the successful purchaser of the golf courses and other YVG and Glenbelle assets. Glenbelle entered into the GHG Contingency Contract in the event that the Initial Purchaser’s contract did not complete. We believe this was in the best interests of Creditors and Investors. The GHG Contingency Contract is dependent on a number of conditions which require satisfaction before settlement is able to occur.
Since the auction the Receivers and Managers have sought to have the conditions precedent to the Initial Purchaser’s contract met.
One of those conditions precedent has not been met and the Initial Purchaser’s contract was terminated on 30 September 2011.
To progress the GHG Contingency Contract the Receivers made an application to the Court for:
- a direction confirming the termination of the Initial Contract by the Receivers (on behalf of Glenbelle) was valid
- approval of the GHG Contingency Contract (as required by the Orders of the Court granting the power of sale to the Receivers).
This application was heard on 4 November 2011 and was subsequently referred to mediation following which the purchaser under the Initial Contract confirmed to the Court that his contract had been validly terminated by the Receivers on behalf of Glenbelle. By orders dated 22 December 2011, the Court approved the GHG Contingency Contract.
Since that time the Receivers worked with the relevant stakeholders to satisfy the conditions precedent to settle the GHG Contingency Contract. In accordance with the orders of the Court, settlement of the GHG Contingency Contract occurred on 20 March 2012.
Based on the sale price achieved and the quantum of priority claims against the sale proceeds, the impact on stakeholders is:
- Employees – All employees will be offered positions with the YVG/Glenbelle Purchaser who will accept responsibility for all employee entitlements.
- Receivership funding – The secured lender has provided substantial facilities to enable the business to continue to trade during the receivership period.
- Secured debt – it is expected that there will be a shortfall to the secured creditor.
- Unsecured creditors – As the secured creditor will not be repaid in full, there will be no funds available for valid trust claims by pre-receivership unsecured creditors.
- Common pool for Investors - As the secured creditor will not be repaid in full, there will be no funds available to include in the common pool for Investors.