Burnside’s Village Pharmacy transferred to new owners after falling into administration in June
New owners have taken over the Village Pharmacy at Burnside Village after it fell into administration in June. And as part of an agreement struck with creditors, unsecured creditors are likely to recover about half of the money owed to them.
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Unsecured creditors of the Village Pharmacy at Burnside Village are likely to recover about 50c in the dollar as part of an agreement to transfer management to a new group of investors.
The pharmacy fell into administration in June just months after previous owner Peter Ting was declared bankrupt.
As part of a deed of company arrangement (DOCA), Mr Ting’s daughter Rachel Tze-Li Ting has contributed $430,000 into a fund that will be used to pay creditors and employees owed money.
Chan Bok has taken over as sole director from Yoon (David) Kim, and is listed as the new joint shareholder with James Cameron.
Mr Ting was previously the sole shareholder and sole director until his resignation in January.
The pharmacy has continued to trade in recent weeks under the management of administrator SV Partners who will now administer the DOCA.
SV Partners director Alan Scott said the lump sum contribution from Ms Ting, together with profits generated in recent weeks, would go towards repaying employees and creditors.
“We will be paying a dividend in two tranches - the first one will be to employees in the next four weeks or so and that will be for leave entitlements and superannuation,” he said.
“And then a dividend to remaining unsecured creditors will occur later in the year.”
Mr Scott said unsecured creditors could expect a return of around 50c in the dollar.
Three other pharmacies associated with Mr Ting are currently in various stages of insolvency.
Findon Pharmacy, Glenunga Pharmacy and Arkaba Pharmacy all fell into liquidation in July.
Early calculations suggested Glenunga Pharmacy, on Portrush Road, had debts of about $200,000, while the Village and Findon pharmacies owed about $1.7 million.
Mr Scott, liquidator of the Findon and Glenunga pharmacies, said the Findon site would remain closed but Glenunga could reopen if a deal is struck with the new owners of the Village Pharmacy.
“At Findon we’re tring to sell the stock and plant and equipment - we’ve advertised it for sale and we’ve had several expressions of interest,” he said.
“At Glenunga we’re selling the plant and equipment and stock and we’re hoping to have a deal with the current owners of the Village Pharmacy.
“It may reopen but it will depend on the Village Pharmacy owners.”
Mr Ting, who stepped down as director of three of the four pharmacy companies in January, was declared bankrupt in February this year as a result of a creditors’ petition lodged by former Burnside Village Pharmacy director and owner Jeff Ramsey.
Mr Ramsey owns and operates a number of pharmacies in South Australia and interstate, branded under his name.