Great Southern administrators Ferrier Hodgson has recommended the Great Southern group of companies be wound up, with the group deemed to be insolvent.
However, Ferrier Hodgson said it could not determine the amount unsecured creditors would obtain as a result of liquidation.
“Given the nature, size and costs involved in determining the assets and potential recoveries in a liquidation scenario, it is difficult to determine with certainty the likely level of return to unsecured creditors that would arise from liquidation,” the report stated.
In its report, Ferrier Hodgson said each of the companies under the Great Southern banner was insolvent and that there had been no deed of company arrangement proposal made available for consideration by the group’s creditors.
The report said a second creditors meeting to be held in Melbourne on November 19 would determine the future of the Great Southern group of companies.
On May 16, Ferrier Hodgson was appointed the administrator of each company of the Great Southern group.
