McWilliam’s administrators have recommended creditors support a purchase offer for the wine company from private equity firm Prcstnt Asset Management.
The deal would include Prcsnt paying $30million for the company and more than $16million for its stock, depending on a stocktake and valuation.
Creditors will vote on the private equity proposal on July 24.
McWilliam’s has a portfolio of brands under its own name, as well as the multi-award-winning Mount Pleasant. It is also the sole Australian distributor for global brands including Champagne Taittinger and Framingham.
KPMG’s Gayle Dickerson said: “We are delighted to have reached a significant milestone in the administration process for McWilliam’s Wines.”
“The proposal received from Prcstnt Asset Management provides a platform for growth and a confident step forward for the company, employees and stakeholders.
“It removes any lingering uncertainty around its financial stability, which has limited its growth potential in recent times. It also provides continuing employment for staff, and will deliver a substantial return to creditors, and possibly shareholders.”
Prcstnt Chair Charles Hunting said: “While it is critical that McWilliam’s is moved out of administration and returned to profitability in the immediate term, over the medium to longer term we will look to inject further capital to scale the business in both domestic and international markets, while driving environmental outcomes in line with our philosophy.”
Under a Deed of Company Arrangement proposal from Prcstnt, priority employees and secured creditors will receive 100c in the dollar, while unsecured creditors will receive 94-100c in the dollar. If the company enters liquidation, unsecured creditors would receive 52-86c in the dollar, but priority employees and secured creditors would still receive 100c in the dollar.
McWilliam’s entered into voluntary administration in January.
