News

HopgoodGanim advises Jumbo Interactive on Manaccom voluntary administration

31 March 2011

HopgoodGanim has acted for ASX-listed technology company Jumbo Interactive, creator of the Oz Lotteries website, in successfully implementing a deed of company arrangement for its troubled subsidiary Manaccom, which had been placed into voluntary administration earlier this year.

The deed of company arrangement will allow priority creditors, including employees, to receive 100 cents in the dollar for debts owed. The remaining unsecured creditors will receive between 43 and 100 cents in the dollar, compared with an estimated two to eight cents had Manaccom gone into liquidation.

According to HopgoodGanim Insolvency Partner Paul Betros, voluntary administration is an effective way for an otherwise financially-strong company to "cut out the cancer" and remove an underperforming subsidiary or business division while maintaining its overall health.

"This is a good example of a voluntary administration getting a result quickly and effectively, and represents a great outcome for all the stakeholders involved.

"The administration will in no way affect Jumbo Interactive's successful international internet lottery business, which has produced solid revenue growth and a strong balance sheet.

"Manaccom had been generating trading losses over several years, and its total unsecured debts are expected to exceed $7.8 million.

"We worked closely with Manaccom's administrators, Deloitte, to ensure we could generate the best possible return for Manaccom's unsecured creditors."

Contact:
Esther Cohen, Senior Communications Advisor
Tel: 07 3024 0192