Axsesstoday, which provides equipment finance solutions to businesses in the transport, hospitality and other industries, went into voluntary administration in April of this year after senior lenders said they were unable to continue supporting the business with ongoing waivers of breaches of loan terms.
Since then, the company has been reviewing offers for the sale of its business and agreed to enter into an arrangements with an affiliate of Cerberus Capital Management LP in July of this year.
It has now been confirmed that the business and assets of several subsidiaries of Axsesstoday Ltd – Axsesstoday Operations Pty Ltd (Operations); A.C.N. 603 303 126 Pty Ltd (ACN603); and Axsesstoday Retail Pty Ltd – have now been acquired by Cerberus affiliate Promontoria Holding 304 BV.
The $259.7-million deal has reportedly allowed for all secured lenders to be repaid in full and enables the lender to exit from voluntary administration.
It has also resulted in over $18 million being made available towards the payment to unsecured creditors.
All current employees are being offered ongoing employment at Axsesstoday, which will operate as a privately held company and joint Cerberus’ global portfolio of companies, which includes Bluestone Mortgages Asia Pacific (Aus and NZ).
Under the terms of the arrangement, which was approved by creditors on 30 August 2019 and completed on 20 September, the ASX-listed company Axsesstoday Ltd (AXL) will be sold separately.
AXL is now a listed shell company following completion of the transaction and will remain under the control of the administrators until the sale of AXL is completed.
In a statement, Axsesstoday said that the transaction will enable the SME lender to “work in partnership with Cerberus to strengthen its business and identify strategic opportunities to expand across Australia”.
Axsesstoday’s chief operating officer, Konrad Pels, commented: “This is an exciting milestone for all of us at Axsesstoday.
“With Cerberus’ support, we will have access to resources and expertise to strengthen our robust platform, elevate our portfolio of financing solutions and capitalise on growth opportunities.
“The acquisition means we have been able to save almost 50 jobs in our Australian office, and we now look forward to beginning this new chapter for Axsesstoday and continuing to be a trusted partner to businesses across Australia.
“Axsesstoday is in a prime position to continue to offer a compelling finance solution to SME customers across Australia,” he added.
Lee Millstein, president of Cerberus Global Investments, welcomed the completion of the sale, stating: “We look forward to supporting the company as it grows its capabilities and continues to deliver tailored financing solutions to meet the needs of Australian businesses.”
Given the successful completion of the sale, the administrators (Deloitte Restructuring Services), will resign.
Joint administrator Vaughan Strawbridge from Deloitte Restructuring Services noted the sale completion, stating: “This is an outstanding result and could not have been achieved without the understanding and continued support of employees, funders, the broker network and customers.
“I am particularly pleased for the employees, whose jobs have been preserved.”
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.