KI-Sebel Pty Limited - Case Update

Kate Conneely and Rahul Goyal of KordaMentha have provided an update on their administration of KI-Sebel Pty Limited, the ultimate holding company of the Sebel Group, which previously operated Sebel Furniture in the Asia Pacific region. The company entered voluntary administration on 1 September so that its affairs could be finalised. During their operation, the Australian members of the Sebel Group entered into an ASIC Deed of Cross Guarantee which gave the companies financial reporting relief from ASIC. The Australian trading entity was placed into voluntary administration in June 2017 and a subsequent DOCA was executed in December 2017, resulting in the business being sold and the Australian trading entity leaving the deed group. The company remains as the sole party of the deed and creditors of the Australian trading entity may have a contingent guarantee claim against the company. The company remained in existence to collect distributions while the New Zealand Hong Kong entities were dealt with by their respective insolvency regimes. This has now been finalised, and the company no longer serves a purpose. Krueger International Inc., the company’s shareholder, has put forth a DOCA proposal following negotiations with the administrators. It has agreed to reduce its claim for dividend purposes by 14% ($12,197,082 to $10,489,490). The meeting of creditors to vote on the DOCA is scheduled for 9 October.