Insitec and Insitec Group Holdings - Case Update

Barry Kogan and Damien Pasfield of McGrathNicol, the administrators of technology company Insitec and Insitec Group Holdings, are recommending that creditors accept DOCA proposals put forth by Gemini Newco, an entity related to secured creditor Whiteoak, but have acknowledged that significant sums may be available to creditors in a liquidation scenario.

In their second report to creditors, the administrators reveal that the companies have been insolvent from at least November 2022, and there is a potential insolvent trading claim against the directors in the range of $10-15 million depending on the insolvency date.

There is also evidence of potential unfair preferences to statutory bodies totalling circa $3 million, as well as potential claims against the directors for breaches of their duties.

The administrators are recommending acceptance of the DOCA proposals, which would see the continuation of the companies as a going concern and the continued employment of approximately 70 employees and 50 contractors. Unsecured creditors stand to receive less than 7 cents in the dollar under the DOCAs.

The second creditors’ meeting is scheduled for 9 July.

Read the report here.