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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44677
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I'd like to get in on the process of bidding suspended ASX

Customer Question

I'd like to get in on the process of bidding for a suspended ASX company in financial distress. I want to understand how the process works and how to bid for such a company with administrators / liquidators. How do I go about finding out what is a worthwhile and attractive bid?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Morning

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advice but a guide to assist you.

You wish to buy the company?

Is the company for sale?

Customer: replied 1 year ago.
it's under VA.
Customer: replied 1 year ago.
I wish to recapitalise and list it again with a new project.
Customer: replied 1 year ago.
Just don't know the exact steps.
Expert:  Leon replied 1 year ago.

Good Afternoon

You need to approach the Administrator of the company and start negotiations with them.

Do not do this on your own. You will need a solicitor to assist to protect you form the debts of the company. If you simply take it over you will be liable for the dents as they currently are.

If they agree to a price then a Contract will have to be entered into where certain things are done by each party.

Do you know who the administrator is and what you wish to keep in the company?

Customer: replied 1 year ago.
Ferrier. So I'll need a doca in place correct? I know also that it's more than just me bidding. How do I assess that my bid is reasonable?
Expert:  Leon replied 1 year ago.

Good Afternoon

a DOCA?

what do you mean by that?

You should seek copies of the accounts of the company from the Administrator and have your accountant look at it and advise you on what they think it is worth.

Customer: replied 1 year ago.
A doca is a deed of company arrangement right? So isn't that the final contract with the creditors, an agreement as to the settlement?
Expert:  Leon replied 1 year ago.

Good Afternoon

If the Company enters into one with the creditors you need to see it.

But you do not need one with them

You will have a contract for the sale of shares to you from the administrator.

You will have to make sure that when you buy all dents are paid out and you are not liable.

You will have a contract with the administrator not the creditors.

You have to negotiate a price where the debts are paid and you buy the company debt free and you have protection.

Expert:  Leon replied 1 year ago.

Good Morning

I hope this is of assistance.

If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon