Restructure of Schlager Construction Group completes successfully

Avior Consulting is proud to announce the successful completion of the restructure of Schlager Group Pty Ltd trading as Schlager Construction Group (SCG).  This follows the approval of the restructuring plan by creditors of SCG last week.

SCG was placed into voluntary administration in mid-April 2021 and we successfully traded the business through the administration period, maintaining the goodwill of the business and retaining 11 employees whilst we explored possibilities and brought the restructuring plan together.

This outcome represents a significant improvement for all stakeholders of the company. It results in:

1. the continuation of employment for 11 staff, which prevents claims from manifesting against the Federal Government for outstanding entitlements;
2. completion of construction works across four education facilitates in the Perth Metropolitan area;
3. full payment to a certain group of core creditors;
4. continuation of the business’ secured banking facilities; and
5. a clear path for us to pursue claims against various third parties that may result in a return to remaining creditors.

The likely alternative to this restructuring plan was that the company would be liquidated and there would be no return to any class of creditor.

The positive outcome was achieved as a direct result of our strategic vision that the core business had value and could be restructured.  It required us to take significant commercial risk and carefully manage the process to reach completion.

We would like to sincerely thank the following groups of stakeholders for helping us achieve this result:

1. the employees of the business who worked hard through the administration to complete the ongoing projects;
2. Programmed Facility Management who worked closely with us through the process and accepted commercial risk to reach completion of the ongoing projects; and
3. the group of subcontractors that continued to work with the company through the administration despite significant uncertainty on their pre-appointment claims.

This outcome is an excellent representation of Avior Consulting’s approach to restructuring and corporate turnaround for small and medium sized businesses.