Raptis creditors mightn't get a cent
CREDITORS of fallen land developer Raptis can expect zero return if they choose to liquidate the company at their next meeting.
Administrators are recommending creditors wait for a proposal on a deed of company arrangement (DOCA), which could see Raptis Group brought back to life in the hope of settling its $974 million of debt.
Raptis Group went into voluntary administration in January after several of its major developments went bust, including the $700 million Hilton Hotel site in Surfers Paradise.
Director Jim Raptis said after the last meeting creditors wouldn't go home empty handed.
Creditors have been told they have four choices when they next meet on Friday.
One is to hand back control to directors, to vote for a DOCA, liquidation, or else simply adjourn their decision.
Administrator Brian Silvia warned creditors were likely to get nothing if they chose to wind up the company.
“It would be in the creditors' best interests for the second meeting of creditors to be adjourned to allow the DOCA proposal to be progressed.”