Administrators’ strategy. The Administrators’ strategy has been to maximise returns to creditors by pursuing sales of ION Consolidated Group’s operations on a going concern basis, where those operations are viable. It was not feasible to re-organise creditor claims and restore solvency without disturbing the existing ownership of ION Limited, owing to the extent of losses which have been incurred, the need for additional capital, and the necessity of maintaining the confidence of customers and suppliers. In short, the salvageable operations within ION Consolidated Group need new owners who can provide adequate financial and technical resources to secure their long term future. The Administrators determined that in most cases it was preferable to continue operating the businesses instead of arranging their closure and liquidation. Maintaining ongoing operations should enable higher going concern sale values to be achieved, and reduces certain creditor claims which might otherwise arise. The ION Energy Services Group was sold by the Administrators as a going concern on 25 January 2005. For the ION Automotive Group businesses, the Administrators engaged the services of CSFB to assist in the sale of the businesses, and to date interest has been shown in all of the remaining operations from a broad range of prospective new owners. Some of the operations of the ION Automotive Group have, despite efforts to improve them, proved to be unviable, consequently it was necessary to close them so as to minimise ongoing losses. In particular, development of the Altona V6 Block plant was suspended by the Administrators shortly after their appointment. After determining the viability and saleability of the Altona project, its permanent closure was announced in February 2005. In March 2005 the necessity to close the Xxxxxxxxx plant was also announced following the inability to sell it on terms acceptable to the plant’s customers and prospective investors. In conjunction with the sale process, the Administrators’ key actions have included the following: ▪ strengthening operational and financial control and management; ▪ protecting and insuring assets; ▪ arranging inter-group and external funding of operations; ▪ implementing profit improvement (or loss reduction) initiatives; ▪ preparing new financial forecasts; ▪ investigating the events leading up to the insolvency of the ION Administration Group; ▪ attending to statutory requirements of the Administration; and ▪ communication with stakeholders – i...
