Becton Property Group says it’s business as usual despite some of its holding companies collapsing with debts of $250 million.
Receivers were appointed to the listed Becton Property Group Ltd and three of its non-trading corporate subsidiaries on Tuesday after failing to meet their debt repayments.
But chief executive Matthew Chun said the move would not affect Becton’s day-to-day business.
Employees had been briefed and there were no plans to cut jobs.
“From a business perspective, the operation continues. There is no change to that business,” Mr Chun told reporters.
“They will continue to run as normal. I will continue to be CEO and I will continue to run the business as it currently run today.”
Receivers from KordaMentha said the limited receivership would not have any effect on Becton’s operating companies operating in the construction, development, and retirement village sectors.
The move mainly affects the ownership and control of Becton, not its business operations.
Mr Chun does not expect any of Becton’s current projects to be delayed.
“Projects are being funded, villages continue,” he said.
“In particular, the retirement business – which was refinanced last year with ANZ and the Oman Investment Fund – there is just absolutely no impact or change.
“Everything will proceed as normal.”
Mr Chun said he had informed staff working at Becton’s sites, villages and head office of the situation and assured them they will be paid in full.
The receivers said settlements on the sale of homes and retirement villas will continue as planned, and deposits for properties will be preserved.
Creditors, including contractors, would also be paid.
The receivers were called in by Becton’s lending consortium, Goldman Sachs-Fortress Investment Group (GSFIG).
Despite lengthy talks, GSFIG opted not to provide waivers and support to the group’s debt facilities which were necessary to ensure the ongoing solvency of Becton Property Group Limited.
Mr Chun said the company had been trying to find an opportunity to restructure for a long time but with no luck.
“It may seem strange, but today’s events will actually bring about stability in our business,” he said.
He did not rule out the prospect of privatising all of the assets held by the holding companies but said it was still early days.
Becton Property Trust’s securities have been suspended from trading on the Australian Securities Exchange.
