Capacity-cutting restructure plan moves ahead

Dec 09, 2020 at 06:23 pm by Staff

The controversial restructuring of heatset printer Ovato has moved a stage further with creditors unanimously agreeing to a plan which will see some receive half of what they are owed.

The haircut applies to unsecured creditors, and is supported by the closure of Ovato's Melbourne print site and a $40 million cash injection.

After "certain other restructuring initiatives", it now goes to a second hearing in the NSW Supreme Court, set December 18. Shares are currently suspended until December 29 after they plunged by 85 per cent to $0.0023 cents.

Part of the agreement is that the high-productivity manroland Lithoman presses from the Clayton site will not be redeployed within the group.

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