In an announcement to the Australian Stock Exchange at 9:30am Thursday 21st July, Ovato (formerly IPMG and Hannanprint and incorporating PMP) has entered voluntary administration. This follows a period of challenging trading, plant closures, division sell-offs and pandemic-related logistic issues. It is sad indeed that a company with roots back to the 1930s when Norman Hannan started the Randwick District News and 1968 with the establishment of Hannanprint proper, is now in administration and its ASX shares suspended. Our thoughts for a positive outcome are with all stakeholders and, especially, all staff. EOIs are being called for now, followed by binding offers within 2 weeks.
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| Ovato's Warwick Farm, NSW, site is one of the most modern web offset centres in Australasia |
The announcement to the ASX reads:
21 July 2022
The Directors of Ovato Ltd (ASX: OVT) (“Ovato” or “the company”) have today appointed Chris Hill, Ross Blakeley, and Ben Campbell (“the Administrators”) of FTI Consulting as Voluntary Administrators to the company, effective immediately.
The Administrators have been advised that ongoing volatile market conditions, the increased cost of raw materials, and legacy cost issues have continued to impact Ovato, leading to the difficult decision to appoint Administrators.
The Administrators intend to trade the company on a business-as-usual basis, while they conduct an independent assessment of the financial position and ongoing viability of the business.
As part of their role in seeking to maximise the chances of the company exiting the Voluntary Administration process in an orderly fashion, the Administrators will also shortly commence a public sale and recapitalization process. Trading in the Company’s shares on the ASX will remain suspended during the administration period.
The Administrators will provide a high-level update at a creditors meeting expected in early August.
End of announcement
For further information please contact:
Media Investors
Stuart Carson ovato_investors@fticonsulting.com
M: 0403 527 755
E: stuart.carson@fticonsulting.com
About the FTI Consulting Corporate Finance & Restructuring practice
The FTI Consulting Corporate Finance & Restructuring practice is an industry leader with an experienced, specialised team of professionals across Australia and the Asia Pacific region as well as North America, Latin America, and Europe. The FTI Consulting Corporate Finance & Restructuring practice leverages its extensive industry knowledge, operational expertise and international network to protect the enterprise value of its clients. It specifically focuses on liquidity management, turnaround and restructuring, capital solutions, performance improvement and transaction advisory services.
