Riviera deal sealed

NT News - Motoring - - NEWS -

RIVIERA has avoided a storm af­ter un­se­cured cred­i­tors ac­cepted a to­ken of­fer for the $16.4 mil­lion they are owed.

The cred­i­tors, largely trade sup­pli­ers, unan­i­mously voted in favour of tak­ing 1.7c in the dol­lar for the debt, paving the way for Riviera to clear the fi­nan­cial mess that has dogged it for the past year.

One cred­i­tor, who de­clined to be named, said while it was ‘‘sad it had to go that way, (the pay­ment) clears the way ahead (for the com­pany)’’.

Last week’s meet­ing ap­proved a deed of com­pany ar­range­ment (DOCA) for five of the 13 com­pa­nies in the Riviera group.

The re­main­der, in­clud­ing the flag­ship Riviera Group Pty Ltd, are not con­sid­ered worth sav­ing and will be liq­ui­dated.

As part of the DOCA, em­ploy­ees sacked dur­ing the re­ceiver­ship will re­ceive their full en­ti­tle­ments with re­ceivers allocating $2 mil­lion to meet that com­mit­ment.

Re­ceivers put up a fur­ther $400,000 to meet pay­ments to un­se­cured cred­i­tors.

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