Veteran property developer Jim Raptis is set to regain control of his collapsed Raptis Group empire after creditors voted in favour of a deed of company arrangement that will eventually allow the company to relist on the ASX.
Raptis Group and its construction arm Rapcivic were placed in administration in January after collapsing with debts of around $1 billion.
The deed of company arrangement (DOCA), which had earlier been approved by Raptis’s bankers Capital Finance Australia, ANZ and St George and administrators BRI Ferrier, involves a debt for equity swap, under which creditors will receive 40 million shares in the Raptis Group.
Jim Raptis declared after yesterday’s creditors meeting that the deal was the best outcome for creditors.
“It has been a difficult period for everyone and we are pleased that the administrators have been able to achieve a result that will provide some return to the creditors,” Raptis told reporters after the meeting.
But not everyone is happy with the outcome and it was reported several tradespeople and contractors left in disgust after learning they are only likely to receive 4c in the dollar under the DOCA.
Window cleaning company boss Paul Scott told the Courier Mail he was owed about $10 million by Raptis and would struggle to survive.
“Teflon Jim’s a good name for him,” Scott said. “He’s used the legal system to get what he wants and he’ll be back in business next week. We’ll struggle to survive it.”
A second creditor meeting will be held within 60 days to establish a creditors’ trust that will be in charge of implementing the DOCA and getting the company trading on the ASX again.
Asked outside the meeting whether he will do things differently next time around, Raptis replied: “Lots.”
He said he would take on less debt. “It’s a huge learning curve. It’s a matter of learning from our mistakes and past experience.”
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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