Catalano Seafood - Case Update

A DOCA proposal for Catalano Seafood will see some unsecured creditors paid up to 91.8c in the dollar if approved. In their report to creditors, joint administrators Rob Brauer and Linda Smith of McGrath Nicol advise that they received six indicative offers, but that a going concern proposal from Avior which provides for a $1.7 million loan to pay out secured creditors National Australia Bank and Capital Finance and to allow priority payments to employees to be made is superior. Creditors who are considered to be critical suppliers to the company will receive a dividend of between 62.9 and 91.8c in the dollar, while remaining unsecured creditors will receive a dividend of between nil and 57.3c in the dollar, depending on the class of creditor. The second meeting of creditors is scheduled for 21 November.