Australian ready-made meal business, Fast Fuel Meals, has entered voluntary administration, with more than $20 million in creditor claims outstanding as the company considers a potential change of ownership.
The Sydney-based business, which has supplied ready-made meals through major supermarket chains including Woolworths and IGA, appointed Dane Skinner of Raft Consulting as administrator on 8 September, according to an ASIC notice. Trading had ceased on 3 August.
The creditor position was reported by 7news, which spoke with Skinner about the company’s financial position and the administration process. According to the report, Fast Fuel Meals currently has $7.43 million owed to secured creditors, $879,303 to priority creditors and a further $12.52 million owed to unsecured creditors.
That puts total claims at approximately $20.82 million, although the figure remains subject to change as creditors submit evidence of their debts and those claims are assessed.
Skinner told 7news that sufficient funds are currently available to pay priority creditors in full. The eventual recovery for secured and unsecured creditors will depend on the terms of any proposed Deed of Company Arrangement (DOCA).
A DOCA can provide a pathway for a company to restructure its debts and potentially continue operating rather than proceeding directly to liquidation.
According to the administrator's preliminary investigations, Fast Fuel Meals was loss-making before entering administration. The company's director had also been in discussions with a consortium of suppliers and management members familiar with the business about a potential acquisition.
The proposed ownership arrangement is intended to recapitalise Fast Fuel Meals, strengthen its operations, and improve its trading performance.
The administration process was initiated to assess the company's available options and seek the best possible return for creditors. However, the administrator has not confirmed whether the proposed acquisition has been completed.
Fast Fuel Meals has previously been stocked by Coles and Harris Farm Markets, in addition to its current supermarket relationships with Woolworths and IGA.
For employees, the immediate outlook is less uncertain. Skinner told 7news that all but one employee was unaffected, with employees and their accrued entitlements assumed by the purchasing entity before the administrator was appointed.
The administration leaves the future of Fast Fuel Meals dependent on the restructuring and ownership process, while the final amount that secured and unsecured creditors will recover remains unresolved.
