The creditors of IT e-tailer E-Store have voted to keep the company afloat under a deed of company arrangement.
E-Store was placed under voluntary administration in early October after a series of credit problems, distribution issues and disputed debts overcame the dotcom.
Creditors met in Sydney on Tuesday afternoon to decide on the e-tailer's fate. Their decision, according to joint administrator Ian Purchas, was unanimous in saving the company from liquidation.
Joint administrators Ian Purchas and Ron Dean-Willcocks had proposed the deed of company arrangement in a report to creditors on October 22. The administrators were of the opinion that in the event if liquidation, "it was unlikely there [would] be a dividend to any class of creditors".
By comparison, the administrators were confident a deed of company arrangement would see both creditors receive some form of return while priority employee superannuation entitlements would be paid in full.
A dividend of approximately 15 cents in the dollar on unsecured creditors claims is included in the deed of company arrangement. This does not include creditors who are E-Store customers waiting for ordered stock that has not been fulfilled. These orders are estimated to be worth around $161,000.
Under the deed of company arrangement, the management of the business will be returned to E-Store director Steve Spilly.