Three recruitment companies have been returned to their directors, after parent company Rubicor Group secured a deal with creditors to bring the companies out of voluntary administration.
Rubicor Group is one of Australia’s largest recruitment companies and is listed on the Australian Securities Exchange. The group, which was founded in 2005, operates 15 specialist brands in the human resources and recruitment areas.
Rubicor subsidiaries Xpand Group Pty Ltd, Locher & Associates Pty Ltd and Challenge Recruitment Pty Ltd were placed in voluntary administration on July 4, with Sule Arnautovic, Glenn Crisp and Chris Baskerville from Jisrch Sutherland appointed to the companies.
The three companies traded throughout the voluntary administration process and the companies’ creditors voted to support a Deed of Company Arrangement (DOCA) at the second meeting of creditors on August 8.
The deed, which Rubicor announced to shareholders on August 9, will involve Rubicor assuming all employee entitlements and liabilities and the companies’ obligations to its financer Scottish Pacific.
Unsecured creditors will be paid a total of $1.8 million as a result of the agreement.
Administrator Chris Baskerville told SmartCompany the three companies have close to 3000 employees on their books, including permanent and temporary staff, and there was no reduction in employee numbers during the administration.
“These companies are great examples of what directors of companies ought to do when they foresee troubled time ahead,” Baskerville says.
“That is, recognise there is a problem, seek professional advice, act on that advice and put the interests of the company ahead of their own personal welfare.”
Rubicor executive chairman David Hutchinson said in a statement the agreement reached with creditors “is in the interest of all parties”.
“This restructure has removed significant liabilities from the three operating subsidiaries that have restricted Rubicor’s operations,” he said.
“We will now be able to invest in systems and people to take advantage of growth opportunities and restore the company to profitability.”