Supie group (In Liquidation)

The administration process is designed to provide companies in financial distress with an opportunity to appoint independent administrators to assess whether it is possible to restructure the company’s affairs. The objectives of the administration process, as set out in the Companies Act 1993, are to:

• Maximise the chances of the company, or as much as possible of its business, continuing to operate; or

• If it is not possible for the company or its businesses to continue to operate – result in a better return for the company’s creditors and shareholders than would result from an immediate winding up of the company.

The appointment of administrators provides a moratorium period during which control of the company in administration is placed into the hands of independent administrators. During this period, the administrators have custody and control of the company’s assets and, working with stakeholders such as the directors, shareholders and management, assess the company’s financial position and develop a proposal of the options available to submit to creditors.

On the appointment of an administrator, all claims against the company are frozen, except for the rights of general secured creditors where relevant. This provides the administrators with a moratorium period during which they can assume control of the company’s businesses, properties and affairs, without the immediate threat of creditors taking action.

While a company is in administration the administrators:

• Have control of the company’s businesses, properties and affairs;

• May carry on that business and manage that property and those affairs;

• May terminate or dispose of all or part of that business or property; and

• May perform any function, and exercise any power, that the company or any of their officers could perform or exercise if the company was not in administration.

In respect of the Supie group, due to funding constraints the administrators have immediately ceased operations and have commenced a process of dealing with the inventory and assets on hand, including facilitating an orderly collection of any supplies made on credit to suppliers that have valid retention of title claim.

There are two meetings of creditors held during an administration:

1. The first meeting is held within eight working days of the administrators' appointment. This meeting allows the administrators to report on their initial findings and the creditors to elect a committee to assist the administrators. Creditors can also vote to replace the current administrators if an alternative administrator is proposed at the meeting.
   

2. The second meeting, known as the watershed meeting, is typically held within 25 working days of the administrators' appointment. This is the meeting at which creditors decide the future of the company through a vote, with three possible outcomes:
   

   1. That the administration of the company be terminated;

   2. That a Deed of Company Arrangement (DOCA) is executed; or

   3. That the company is placed into liquidation.

The administrators are undergoing their initial process of information gathering and analysing the companies' affairs. Prior to the watershed meeting, the administrators will prepare a report for creditors and make recommendations on the future of the companies. However, based on an initial assessment of the group’s position, the administrators anticipate making a recommendation that the companies be placed into liquidation.

Customers that have paid for goods they have not received may be able to claim a chargeback with their credit card supplier. We recommend contacting your bank to determine the process for claiming a chargeback.

If you are unable to claim a chargeback, you will have an unsecured claim in the administration and can lodge a claim form with the administrators. At this stage, the administrators are unable to confirm the outcome of the administration, however consider it to be unlikely that there will be insufficient assets available to repay unsecured creditors.

At this point in time, the administrators are unable to confirm the outcome of the administration. However, based on their preliminary investigations, they do not envisage a return to shareholders.

Under the Company’s Act 1993 shareholders' votes must be disregarded by the administrators unless the Court orders that they can be taken into account. Notice of any intention to make such an application must be given to the administrators before a resolution is taken and the application to Court must be made within 10 working days of the respective creditors’ meeting.

Please email your query to nz_supie@pwc.com. We are receiving a number of queries at the moment, but will get back to you as soon as we can.

Please complete the form here for Supie Limited, Workerly Limited, or Bevie Limited, and email to nz_supie@pwc.com.