Riviera continues to rebuild
Creditors agree to Deed of Company Arrangement
At a meeting held yesterday in Brisbane, the creditors of Riviera, Australia’s largest luxury boat builder, voted in favour of a Deed of Company Arrangement (DOCA) that will see all current and former employees receive their full entitlements, and a dividend paid to unsecured creditors.
During the receivership, the operations of Riviera have been restructured to achieve greater efficiency and continued production of Riviera vessels. The DOCA is a further step in restructuring Riviera and enabling it to trade in its own right, outside of formal administration processes.
In effect, completion of the terms of the DOCA will bring to an end the official appointment of Voluntary Administrators to Riviera. This will allow the receivers and Riviera management to continue to improve and grow the Riviera business.
"The acceptance of the proposed DOCA is a further milestone in the rebuilding process of Riviera since the considerable effects of the Global Financial Crisis (GFC) impacted the global luxury boatbuilding industry, forcing Riviera into receivership on May 8, 2009," said John Anderson, Riviera’s chief executive officer.
"Riviera coming out of Administration also removes any possibility of the liquidation of the legal entities that were previously under Administration. This creates even greater security and confidence in Riviera moving forward.
"As we enter a new year, Riviera is powering into 2010 with strong sales, realistic global inventory levels. It is actively engaged in multiple new product development projects for release at major Boat Shows this year.
"We are certainly in a strong position to maximise the opportunities of the economic recovery in 2010. Riviera will continue to excite the market again this year."
This significant agreement was reached with overwhelming support from creditors for the DOCA, covering five trading entities within the Riviera Group of companies. The DOCA covers the current Riviera trading entities; Riviera Marine (INT.) Pty Limited, R Marine Pittwater Pty Limited, Riviera Runaway Bay Pty Limited, Riviera Coomera Pty Limited, and Riviera Marine (MFG) Pty Limited. The eight remaining, non trading entities of the Riviera Group are no longer required, given the corporate rationalisation and restructuring of the group, and so are not included in the DOCA.
Under the terms of the DOCA, former employees of the Riviera DOCA companies will receive all of their unpaid wages, superannuation, annual leave, and any relevant redundancy payment. Current Riviera employee’s entitlements will continue to accrue and be available to those employees in the ordinary course of business.
Creditors will also benefit from the terms of the DOCA with a dividend being paid to unsecured creditors.
Under the terms of the DOCA, former employees entitlements will be paid by the Receivers and Managers by April 30, 2010, and funds will be paid to the Administrators by 30 June 2010 to enable a dividend to be paid to unsecured creditors. This will result in the Riviera DOCA companies coming out of administration.
Riviera offers 20 different models, from 36 to 85ft, across four model series. For more information, visit www.riviera.com.au.
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