Struggling developer Bensons Property Group is out of back in the hands of its directors after a deal with creditors over its $813m of debt was sealed.
The company’s wealthy founding family agreed to fund a liquidation-as-creditors-approve-bailout-deal/news-story/2e12e68af3effed473525910ae721ca2″ title=”www.goldcoastbulletin.com.au” data-tgev=”event119″ data-tgev-container=”bodylink” data-tgev-order=”2e12e68af3effed473525910ae721ca2″ data-tgev-label=”business” data-tgev-metric=”ev”>Deed of Company Arrangement (DOCA), which will see $414m paid to creditors to avoid liquidation.
Under the deal, creditors will be paid $414m, compared to receiving no guaranteed return in a liquidation.
The group went into voluntary administration on December 27, and receivers were appointed on January 10 on behalf of secured lender Perpetual Corporate Trust.
Sebastian Hams of KordaMentha was appointed deed adminisatrator late on Monday.
Among those owed money is the Gold Coast’s Home of The Arts (HOTA), which is listed as an unsecured creditor for $125,000.
In 2022, founder Elias Jreissati pledged $1m to HOTA and one of the art hub’s galleries was named in honour of his family.
He is understood to have paid $125,000 of the $1m pledged, with the debt comprising the next $125,000 annual instalment.
Experience Gold Coast Head of Arts and Culture Yarmila Alfonzetti would not say whether HOTA voted in favour of the DOCA and did not answer questions about the impact of the shortfall on the gallery’s bottom line.
“Private…