The Bowden Group of Companies

The Issue

The Group comprised 6 companies which operated and managed 16 orchids (majority of which were owned and some leased) growing apples and stone fruit. The operations also included a state of the art packaging facility used to grade and pack the group produce and that of other growers and a transport business from early years to deliver the group package produce to the market.

The Group employed 188 staff at the time of the appointment of the administrators.                                                   

The group had an annual turnover of $12 million, assets with a book value of $29.8 million and a secured creditor owed $32 million.

Scope of the Assignment

Appointed by the directors to maximise the return to creditors, including the secured creditor, by way of asset realisation.

The Solution

A Deed of Company Arrangement was formulated as a vehicle for paying a dividend to unsecured creditors, allowing the Deed Administrators to continue to trade the business which lead to a sale of the Group’s orchid and packaging operation.

Value Added

The value in the Group’s business was retained whilst the Deed Administrators continued to oversee the operations. It also provided employment to the community where the business operations were located which in turn generated support for the business.

If the Company’s operations were shut down immediately following the appointment of the administrators there would have been no likelihood of a return to unsecured creditors.

The formulation of the Deed of Company Arrangement resulted in a dividend being paid to unsecured creditors of the Group. It also enabled the secured creditor to explore all options in respect to the disposal of the assets subject to their security.