What creditors can expect from first RGD collapse meeting
CREDITORS are likely to be given an indication of the state of RGD Group and its related entity, but a detailed report was not expected to be presented at next week's meeting.
An electronic first meeting of creditors of RGD Group Pty Ltd and RGD Constructions Pty Ltd was set to be held on May 20.
It followed the appointment of FTI Consulting as administrators of the major Coast building firm late last week.
A spokesman for the administrators said the first creditors meeting would provide creditors with an update of the administration of the companies and explain the process.
"The administrators continue to assess the financial circumstances of each of the companies and to determine the extent of debts owing," the FTI Consulting spokesman said.
The spokesman said a detailed report would also be "prepared and issued to creditors prior to the second creditors meeting, and the report will include the administrators' recommendations as to the options available to the creditors".
"Those creditors will then have the opportunity to vote on those options at the second creditors meeting, using the information in the report," the spokesman said.
"It is intended that an indicative position statement for each entity will be disclosed to creditors at the meetings to be held on May 20.
"The administrators are working on preparing that from company records and creditor claims."
At next week's meetings, to be held at 10am and 11am respectively, creditors could also resolve to remove the current administrators and replace them with an alternative.
Australian Securities and Investments Commission documents revealed three meetings between administrators and RGD Group director Ron Grabbe and his advisers between March 20 and May 8.
FTI Consulting received a $55,000 upfront payment for the administration, paid by RGD Group shareholder Greg Clark.
FTI Consulting had been referred to the appointment by Porter Davies Lawyers, but FTI Consulting's John Park and Kelly-Anne Trenfield noted there were no formal or informal arrangements in place, the appointment was not "financially significant" to their firm and there was no expectation or agreement between them and Porter Davies about the conduct of the administration.
The administrators also noted FTI Consulting was not reliant on referrals from Porter Davies, who were one of many firms who referred work to or sought advice from them.
The administrators said they'd received no remuneration for the information or advice given to the company's lawyers and director from March 20-May 8, or any other time prior to their appointment.
The documents also showed changes to company details which took place on February 25.
They included Mr Grabbe's son, Klint, ceasing as a director of RGD Group.
From the same date the document showed RGD Group Pty Ltd's ordinary shareholdings decreased by its entire 700, while Project Commercial Pty Ltd's ordinary shares also fell by the entire 300 held.
Mr Grabbe's 700,000 non-cumulative redeemable preference shares were also decreased entirely, with him no longer holding any.
The documents showed Greg Clark's shareholdings increased to the tune of 1000 ordinary shares and 700,000 non-cumulative redeemable preference shares.