Refap Group - Case Update

Rob Kirman and Linda Smith of McGrathNicol, the administrators of the Refap Group, are recommending that creditors vote to accept a DOCA proposed for one of the companies within the group.

Refap, Refap Industrial Services and Bushlolly Enterprises entered voluntary administration in February.

Refap was established in 2010 to help more Aboriginal people gain skilled, long-term employment in Karratha. Refap Industrial Services and Bushlolly Enterprises were established in 2016 and operated a commercial laundry business and cafe and catering business respectively.

In June 2023, Refap lost the government funding on which it was reliant to a competitor and was no longer able to fund itself or Refap Industrial Services and Bushlolly Enterprises. In addition, there was a dispute between two individuals who were purportedly appointed directors on the death of the sole shareholder and director of the group. That dispute ended with the Court ordering these appointments invalid and placing the sole directorship and shareholding of the companies with one of the individuals, Alissa Rizzi, in her capacity as executor of the estate of the previous sole shareholder.

The DOCA — which is only for Refap — was proposed by Ms Rizzi in this capacity, and provides for a $70,000 contribution amount to be paid into a deed fund, plus a top-up mechanism to ensure a return of 100c/$ to all non-related creditors of Refap, including employees and unsecured creditors. The second meeting is scheduled for 26 June.

Read the administrators’ report here.