Trade creditors for collapsed denim stalwart Bettina Liano look set to receive 9.6 cents in the dollar, following a deed of company arrangement (DOCA) which will see the company handed back to its sole director. The DOCA was approved at a second meeting of creditors earlier this month, with the restructure seeing the business handed back to Bettina Liano and its six remaining stores continuing to trade. As a result, secured creditor ANZ and landlords for these sites will be paid in full while unsecured creditors, a majority of which are trade suppliers, will receive 9.6 cents in the dollar. While administrators initially estimated unsecured creditor claims at $1.7 million, it was advised that final proofs of debt from those affected were likely to bring the figure closer to $2.3 million. Ferrier Hodgson director of corporate communications Michael Cave confirmed the outcome to Ragtrader. “Through the DOCA, Bettina Liano Pty Ltd is handed back to the sole director and the six remaining Bettina Liano stores will continue to trade.” Liano was eligible to vote at the meeting through her related company Sendara, which was listed as a secured creditor to the business. Administrators for Ferrier Hodgson advised $1.04 million had been directly deposited by Sendara to the company’s bank account through the sale of property in February 2011. Sendara is controlled and owned by the director and her two daughters and includes a portfolio of properties, with another auction scheduled for September 22 in order to satisfy secured debt from ANZ. “It was [the administrator’s] professional view that Sendara’s charge was valid and that Sendara was eligible to vote at the meeting of creditors,” the minutes read. Minutes from the creditors meeting also revealed that other offers to purchase the business had been knocked back, as they were allegedly insufficient to pay the secured debt owed to ANZ. Sendara and a representative for several company employees voted in favour of the DOCA, while representatives from the Australian Taxation Office and trade creditor Jules Jewellery voted against the resolution. Trade creditors Rayona Frock Manufacturing and Richmond Industrial Laundry abstained from voting. Administrators then conducted a poll and the motion was declared carried. Bettina Liano currently operates six retail sites across the country, with the company specialising in women’s jeans and select apparel, jewellery and accessories. Assia Benmedjdoub
