Poolrite calls creditors meeting

Australian pool equipment manufacturer Poolrite called creditors together on September 13 to garner support for the company to trade out of its current financial difficulties.

The meeting at the Pacific Golf Club in Brisbane was chaired by Poolrite International Sales Director Xavier Vidal who was authorised by Ross Palmer to advise the creditors of the current financial position of Poolrite Australia Pty Ltd and Poolrite Research Pty Ltd.

At the packed meeting a number of options were discussed and a plan was outlined. At issue was the fact that Poolrite needs a cash injection to enable it to trade out of its current financial situation. Its bank is supportive of the company and is fully aware of the situation and has been kept informed on all developments.

As reported on splashmagazine.com.au in July, Ross Palmer had been seeking equity investment in Poolrite by licensing its technology and has appointed an equity investment firm to facilitate the process. There had reportedly been some interest.

Many blunt questions were asked from the floor, and a creditor told SPLASH! that the tone was as positive as could be expected at these types of meetings. Ross Palmer is currently in hospital and an unnamed person who is a trusted friend of Palmer has been granted power of attorney to act on his behalf. This unnamed person is currently seeking legal advice to determine if their power of attorney enables them to appoint a voluntary administrator.

If that is the case, an administrator will be appointed to assist Poolrite in continuing to trade. It was discussed that with the value of the equity held in Poolrite’s intellectual property, it would be self-defeating to attempt to wind-up the company. The floor agreed, and the general outcome was that unsecured creditors would wait for the appointment and subsequent report from the voluntary administrator.

Vidal asked for the support of creditors over the next fortnight to allow the appointment of the administrator and his subsequent report. Another meeting is to be called on or about this date.