Wambuwayyn Pty Limited - Case Update

Wambuwayyn Pty Limited, trading as Contentious Character, a Canberra region winery, has successfully emerged from voluntary administration under a DOCA that will see the business restructured and employees and secured creditors paid in full. Ezio (Eddie) Senatore was appointed administrator of the company on 12 September, after the winery faced significant challenges due to rising interest rates, the cost of living crisis, COVID shutdowns, the 2020 bushfire smoke taint, Chinese tariffs on Australian wine, two wet seasons and internal disputes regarding the strategy of the company. Slattery’s Valuers and Egan Valuers were engaged to assist with valuations, while Wine Network Consulting was engaged to assess the company’s position in the market, and Xcllusive Business Sales was appointed to seek out expressions of interest to acquire the business. Ultimately, however, the company will continue trading after entering into a DOCA. The terms of the DOCA include: (1) two of the company’s shareholders transferring their interest to the remaining two shareholders; (2) the creation of a $176,000 pool for unsecured creditors, to be funded from the remaining two shareholders’ sale of real property; (3) employees to be paid in full on the sale of equipment; (4) accelerated payment in full to secured creditors (2 years for the first-ranking secured creditor and 2.5 years for the second-ranking secured creditor); and (5) unsecured creditors to receive a dividend of 17 cents in the dollar over 2 years at the latest.