Universal Communications Group - Case Update

Katherine Sozou and Matthew Caddy of McGrath Nicol have provided an update on their administration of Universal Communications Group, a leading provider of broadband design, cabling and construction across Australia and New Zealand. The company entered voluntary administration on 8 November, after its financial position deteriorated due to delays and cost overruns on several projects with OptiComm, its key customer in Australia. Following the appointment, the administrators approached two interested parties and received inbound interest from a third-party familiar with the company’s operations that expressed interest in taking over the company’s contracts. Following further discussions, it became evident that a sale transaction was not viable. As a result, the administrators are assessing the company’s ownership of inventory assets and intend to sell the assets directly to third party(ies) or indirectly via an auction house. At this preliminary stage, payments of c. $0.15m have been identified as potentially voidable unfair preference payments. The second meeting is scheduled for 13 December.