What does Voluntary Administration mean for shareholders?
Voluntary Administration (VA) is a process where a company is placed in the hands of an independent Insolvency practitioner who can assess all the options available to restructure the business including a sale of the business in order to achieve the best outcome for all stakeholders . The VA process also allows for a recapitalisation of the business through a Deed Of Company Arrangement. Oroton is continuing to trade on a business as usual basis while the Administrators seek a buyer for the Oroton business and pursue recapitalisation offers. The intention is to seek a buyer for the business or pursue recapitalisation as soon as possible. The Administrators have advised they anticipate that the process to find a buyer for the Group will be completed by the end of January 2018.
During voluntary administration shareholders cannot transfer shares in the company without permission from the Administrators or the Court. For further information on the impact of voluntary administration on shareholders, please refer to the Australian Securities and Investments Commission Info Sheet Insolvency: A guide for shareholders:
When will the 2017 AGM be held?
In December 2017, the Administrators of Oroton requested that ASIC grant Oroton relief from section 250N of the Corporations Act 2001 (Cth) (“the Act”) to extend the time to hold its 2017 AGM. On 17 December 2017, under section 250P of the Act, ASIC granted an extension to the period within which Oroton must hold its 2017 AGM from 29 December 2017 to 29 March 2018.
This extension allows the Administrators time to satisfy its obligations to Oroton’s creditors in accordance with the requirements under the Act. A further update in respect to the 2017 AGM will be provided in due course.
This notice has been provided to the ASX here