Aside from GAME Australia being sold outright, there is also the possibility that a Deed of Company Arrangement (DOCA) be organised (an unlikely scenario), a return ofto the company’s directors, which would require the purchasers to personally take on the bulk of the company’s debt, or liquidation, with the complete sale of the company’s remaining assets to provide for existing creditors.
With the company’s current, muchleanerstructure of 31 stores nationally, an outright sale is the best possible hope for the chain’s continuation.
A source close to the matter has confirmed to MCV that there were over 30 interested parties at the time of the first creditor’s meeting, whichtook place last week. Some of these backers have since walked away, allegedly due to not being happy with ongoing negotiations with landlords of the company’s retail outlets.
MCV understands that this number of parties being interested and some backing away is a usual part of any administration process and cannot necessarily be read to mean that any decision has been reached just yet.
The same source told MCV that liquidation may be an option in ‘3-4 weeks’ for the company. This is likely down to the fact that the second creditor’s meeting, which isscheduledto take place on 19thJune, will be the final deadline for the company selecting one of the above mentioned available options, of which liquidation is one.
Only time will tell if the new, leaner company can attract a definite buyer in between now and then.
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