Quintis’ shareholders have signed off on a plan to keep the sandalwood producer afloat.
With the support of secured creditors, McGrathNicol (the receivers) successfully proposed a Deed of Company Arrangement to the Voluntary Administrators that would see between $125-$175 million in new cash injected into the business to fund operations on a long-term basis.
Last week the creditors voted for the Receivers’ proposed Deed of Company Arrangement to see the business emerge as a private company in a strong financial position and well placed to continue its strategy as the world’s leading marketer, producer and seller of sandalwood timber, oil and products.
The creditor vote is an endorsement of the strategy to recapitalise the companies with between $125-$175 million in new cash to be injected into the business to fund operations on a long-term basis.
The Receivers continue to work to complete the next steps in the recapitalisation process in anticipation of a late August 2018 completion date.
Quintis owns large sandalwood plantations and an office in the Katherine area.
Under the proposal, Quintis’ bond holders will recapitalise and acquire control of the subsidiaries of Quintis Limited and the entirety of the group’s business and assets.
The proposal represents a favourable outcome for growers, employees and creditors as it preserves Quintis’ vertically integrated business model, the receivers said.