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Light shed on Ostwald Bros. financial troubles

BACK TO WORK: Those who were stood down last week have been told they can go back to work.
BACK TO WORK: Those who were stood down last week have been told they can go back to work. Michael Doyle

THE ISSUES surrounding Ostwald Bros. has become clearer as administrators have established roughly how much money the company owes to creditors.

In a statement made this afternoon, PriceWaterhouseCoopers (PwC) have made it clear the company owes at least $61 million dollars.

"The Administrators have established a clearer picture of the debt position of the company, with $31 million owed to 536 unsecured creditors, and $30 million owed to the main secured creditor," the statement said.

In better news, the Ostwald Bros. employees who were stood down last week after the company went into voluntary administration, have been given the green light to go back to work, after PwC were able to negotiate their return.

PwC administrator, Derrick Vickers said the news of workers retaining their employment was"pleasing".

"It's pleasing that we've been able to negotiate a return to work for these employees, and good that these projects can continue without delay," Mr Vickers said.

"Our focus now is on our review into the company's financial position, and working towards the best outcome for all creditors, including the employees in roles that were made redundant last week."

It is understood over 20 parties have expressed interest in purchasing or restructuring the company, however these negotiations are in it s infancy.

"We've been encouraged by the level of interest, and while it is early days we're hopeful that a party will be found who is keen to take on the business in its entirety either as a sale or restructure," Mr Vickers said.

An update will be provided to creditors at the first creditors' meeting tomorrow, Wednesday 6 September, 2017.

Topics:  dalby ostwald bros voluntary administration


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