Ostwald brothers to regain control of company
THE administrators of embattled Ostwald Construction Materials has confirmed today that Ostwald brothers Brendan, Daniel and Matthew will regain control over the company.
After a second creditors meeting this morning, administrator Derrick Vickers of PriceWaterhouseCooper revealed that creditors had accepted a Deed of Company Arrangement (DOCA) submitted by the three brothers and a "silent investor".
The contract was worth $2.15 million.
"We believe that this is the best outcome for creditors and the remaining employees of Ostwald Construction Materials," Mr Vickers said.
"This means that the company can continue to trade including its contracts under the DOCA. Creditors will be paid out of the Creditors Trust in due course pursuant to the terms of the DOCA."
The 15 creditors in attendance at today's meeting, however, voted down a report which detailed the estimated return to creditors under a liquidation scenario.
The deed is expected to be implemented within 21 days, granting the brothers, the silent investor and the board control over the company.