News

DOCA Endorsed for FVA Group Acquisition of Fairview

Written by Kristy Welsh | Oct 14, 2020 4:16:19 AM

After conducting exhaustive due diligence on the Fairview Architectural business, Grant Thornton has recommended to creditors that the Company accept a comprehensive and binding Deed of Company Arrangement (DOCA) submitted by FVA Group.
Acceptance of the DOCA/Creditors Trust would effectively ensure that trade continues on a business-as-usual basis.

While several entities expressed an interest in acquiring the Fairview business and its broad product portfolio, the fully funded FVA Group rescue package (DOCA), includes undertakings to:

  • Pay every trade creditor of the company certainly and in full (100 cents in the dollar)
  • Save all of the company’s regional jobs
  • Fund contingencies for a pending legal action against the former Fairview company, and
  • Allow the business to focus on growth.

The Grant Thornton report confirmed that - as Fairview directors had always maintained - the Company was solvent up to the commencement of the administration and the basis for the appointment was that the Company had potential threats to become insolvent.

Insolvency threats presenting included widespread industry contractions (due to COVID and other headwinds) plus expected legal costs brought by class action claims.

Fairview office holders have always acted responsibly and any suggestion to the contrary is refuted. Were any claim against them to be pursued it would be vigorously defended.

Those at the heart of this essentially strong business are confident that the report findings confirm the FVA Group’s DOCA to be in the very best interests of its creditors, employees, clients and associates.

A meeting of creditors - in response to publication of the Administrators report - is to be held via an online webinar at 11:00 AM (AEST) on Tuesday, 20 October 2020.

Further information: Gerry McCusker 0407 80 50 70; gerry@engageorm.com