Zone RV Coolum Beach owes creditors up to $42m, 240 jobs axed

A Queensland caravan manufacturer has crashed into administration owing a staggering debt up to $42m after making 240 workers redundant.

A Sunshine Coast caravan business could owe creditors up to $42m as confirmation of more than 200 redundancies was revealed at a meeting held by administrators.

A Sunshine Coast caravan business could owe creditors up to $42m as confirmation of more than 200 redundancies was revealed at a meeting held by administrators.

Zone Manufacturing Pty Ltd, the company behind Zone RV in Coolum Beach, and Zone Holdings Pty Ltd both entered voluntary administration earlier this month according to documents lodged with ASIC,

Rahul Goyal, Catherine Conneely, and Stephen Earel of Cor Cordis were appointed as administrators on Monday, and a first creditors’ meeting was held yesterday.

According to information released by the administrators more than 250 stakeholders participated in the meeting, chaired by Mr Goyal.

Customer claims currently total an estimated $18m, employee entitlements are estimated at $4m and supplier claims are currently estimated to be between $15 and $20m.

A spokeswoman for the administrator said about 240 employees were made redundant when Cor Cordis was appointed with about 40 employees remaining to provide support, care and maintenance.

More than 250 stakeholders attended a creditors’ meeting held by Cor Cordis yesterday, December 10.

“Work is progressing to stocktake assets, assess leased and owned property, and understand operational workflows, work-in-progress, and the status of customer builds,” she said.

“The administrators will provide a further update on customer orders next week.

“PPSR creditors are also being contacted individually to validate their claims and security against Zone RV.”

Cor Cordis is “exploring sale and recapitalisation options”, with “whole-of-business and asset-by-asset” sales being explored.

“No committee of inspection has been formed, reflecting the short administration timeframe and the desire to minimise additional cost,” the spokeswoman said.

A report by administrators is expected to be issued in January next year, ahead of the second meeting of creditors.

“This report will outline the administrators’ investigations into Zone RV and provide the administrators’ recommendations regarding the future of Zone RV,” the spokeswoman said.

The spokeswoman said Cor Cordis remained committed to transparent communication and to “pursuing the most commercially viable” outcome for all stakeholders.

Originally published as Zone RV Coolum Beach owes creditors up to $42m, 240 jobs axed