Riviera deal sealed
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.