ING-owned dealer group Millennium3 is currently the only company to have stumped up cash to save Superwoman Financial Solutions Group, which owes nearly $2 million to creditors.
Millennium3 and Scone-based WestFin submitted deed of company arrangement offers to keep the company from liquidation.
Administrators asked both to provide a bank guarantee or put funds into the creditors’ trust account before a creditors meeting on May 30.
As InvestorDaily went to press, administrators had received no money from WestFin, while Millennium3 had supported its bid with cash.
SFSG and its two subsidiaries Superwoman Financial Solutions and Superwoman Money are in voluntary administration following a dispute between shareholders after a six-month joint venture with Millennium3.
Creditors have been recommended to vote for a deed of company arrangement intended to keep the female-centric financial services company from liquidation.
WestFin (Australia) offered to pay $3 million, which would pay off creditors in full and provide a surplus of around $1 million in return for the companies’ assets.
However, as InvestorDaily went to press WestFin still had to undertake due diligence before making its offer unconditional.
Millennium3 has offered to pay off creditors in full in return for the companies’ assets.
Should both companies satisfy financial obligations and WestFin’s offer is made unconditional, then the administrators will recommend WestFin’s offer to the creditors as it provides a return to the shareholders of SFSG where as Millennium3’s proposal does not.
“Two of the directors of the companies, Barry Martin and Darryl Foster, list mismanagement by the chief executive officer [Tim Harrison] and company accountant as the cause of failure of each of the three companies,” the second report to creditors stated.
“The third director, Hugh Martin has not provided a specific reason for the cause of failure of the companies.”
Further offers may be made and current offers modified before the second creditors meeting.
If creditors accept an offer, they will receive dividend distribution within three months of execution of the deed of company arrangement.
