CS Logistics Group.
CS Logistics Group was an international freight forwarding and warehousing group comprising CS Logistics and CS Warehousing and was placed into Voluntary Administration (VA) in 2019. Rodgers Reidy was appointed as the manager for that VA with a team headed by Melbourne Director Brent Morgan.
Prior to the VA and the COVID-pandemic which had a severe impact on its core business, CS Logistics Group had a turnover of more than $80m and around 150 staff across the eastern states of Australia, including 3 distribution centres in Victoria and New South Wales and international freight forwarding in Queensland.
Our Vic, NSW & Qld offices came together to stabilise the businesses and maintain trading for all customers while we sought to sell the businesses. After successful sales campaigns, 3 of the 4 business segments were sold which provided ongoing employment for around 75 staff and tenants for the respective landlords and a Deed of Company Arrangement (DOCA) was executed to restructure the company’s debts.
All 168 participating unsecured creditors receive their full entitlement under the DOCA by December 2021, less than 18 months after the process commenced.
As a quick snapshot of the key achievements:
- Traded business under VA for 14 weeks, c. 100,000 transactions at a profit of c.$1.3m
- 3 separate sales of business segments (approx. 50% of staff retained employment)
- Continuity of services to the majority of clients
- Realized c.$9.5m from debtors (c.79%)
- Reductions in lease liabilities c.$17m
- Restructure of related party debts totalling c.$64m
- Distributions paid or to be paid to:
- Secured creditors c.$2.4m
- Employee creditors c.$2.1m
- Unsecured creditors c.$5m
A first (interim) dividend to unsecured creditors (approx. 50% of distributable funds) was paid in July 2021, with the final distribution (remaining 50%) paid in December 2021.
A great result by our talented and dedicated staff, CSLS employees and our various agents who assisted throughout the challenging 18-month process.
- New South Wales
- Brent Morgan (lead)
- David Holton
- Legal: Norton Rose Fulbright
- Accounting: Matthews Steer