Becton holding companies in receivership
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SYDNEY, Feb 26 AAP
February 26 2013, 12:30AM
Troubled retirement village developer Becton Property Group has had some of its holding companies placed in receivership.
Mark Korda and Janna Robertson were appointed receivers and managers of Becton Property Group Limited and three of its non-trading corporate subsidiaries on Tuesday.
However they said the limited receivership would not have any impact on Becton's operating companies involved in the construction, development and retirement sectors.
Mr Korda said the move mainly affected the ownership and control of Becton, not its business operations.
"It will be business as usual in the development, construction and retirement operations," he said in a statement.
"The entity that employs Becton staff is part of the headstock and we can confirm that all salaries will continue to be paid and all accrued employee entitlements will be paid as and when they fall due."
Mr Korda said settlements on the sale of homes and retirement villas will continue as planned, and deposits for properties will be preserved.
Creditors, including contractors, would continue to be paid.
Becton Property Trust's securities have been suspended from trading on the Australian Securities Exchange.
The receivers were called in by Becton's lending consortium, Goldman Sachs-Fortress Investment Group (GSFIG).
Becton said despite protracted discussions, GSFIG had opted not to provide waivers and support to the group's debt facilities which were necessary to ensure the ongoing solvency of Becton Property Group Limited.
"The board and management submitted detailed restructuring proposals to GSFIG but has been advised that GSFIG is not prepared to support these restructuring proposals," Becton said.
"Having exhausted all alternatives available to it, the board therefore has no reasonable basis for believing BPGL will continue to be in a position to pay its debts as and when they fall due."