Hills Limited - Voluntary Administration

Hills Limited (ASX:HIL), a Sydney-based diversified investment company, entered voluntary administration on 2 June. Founded in 1945, the company grew to fame with the invention of the Hills Hoist, a height-adjustable rotary clothes line. The company soon diversified into other businesses and industries. At present, it focuses on two main operating divisions - a health solutions business and a technology installation services business. In 2016, a dispute arose with a partner over the profits of Hills’ contract for the supply of potential entertainment systems in the Western Sydney Local Health District. The proceedings were initially dismissed by the Supreme Court in 2022, but the decision was reversed on appeal in May 2023, with Hills’ found liable for $5.5 million in damages plus costs. Subsequent negotiations to settle the judgment were unsuccessful and secured creditor Causeway Financial, owed approximately $6.0 million, moved to appoint administrators to mitigate its risk. Sule Arnautovic and John Vouris of Hall Chadwick were appointed joint administrators. The company was referred to them by Causeway in February 2023. The administrators have continued to trade the business while concurrently running a sales process for the business. Seven potential purchasers have been shortlisted. Unsecured creditors claims are estimated to be $10.9 million, with estimated returns to be provided once a DOCA proposal or sale is finalised. Mills Oakley are assisting the administrators. Full report.