General News
23 October, 2024
Isa Rodeo Ltd called us a month ago: administrators
Despite telling creditors they were handling things, the Isa Rodeo leadership had already spoken to SV Partners.
As businesses prepare to be told they won't receive their full payments from Isa Rodeo Ltd, North West Weekly can reveal that Isa Rodeo had been holding meetings with potential administrators for more than a month, while at the same time assuring creditors that all efforts were being made to provide payments of money owed.
One day after SV Partners took the reins of the organisation, the newly appointed administrators emailed a 31-page “initial notice” to Isa Rodeo Ltd creditors just before 2pm on Tuesday.
The notice reveals that Isa Rodeo Ltd’s chair Rowena McNally and “employees of the company” had begun hosting video conference and telephone calls with SV Partners director Michael Brennan to discuss entering voluntary insolvency.
Those discussions started on September 20. Isa Rodeo Ltd entered voluntary administration on Monday, October 21.
However, despite its financial woes, Isa Rodeo Ltd continued to attempt to placate its creditors in the weeks between September 20 and the public appointment of SV Partners as administrators.
North West Weekly has seen multiple exchanges between Isa Rodeo officials and creditors after September 20, indicating the company was still assuring creditors that all efforts were being undertaken to arrange payments soon.
Creditors told North West Weekly they were “furious” and “disappointed” at Isa Rodeo Ltd’s actions.
“Rather than just tell us the truth, they were clearly just trying to buy themselves some more time – no one will trust them or want to do business with them again,” one creditor told North West Weekly.
The first creditors meeting will be held in Mount Isa on October 31.
According to the notice issued this week, administrators are also required to meet again with creditors before November 25.
“Before that meeting, you will be sent the notice of meeting and a detailed report which sets out the options for the Company’s future,” the administrator’s notice stated.
“We will also give our opinion as to what option we think is in the best interests of creditors.”
The Isa Rodeo board was stood down just before 10 o’clock on Monday morning and SV Partners directors Michael Brennan and David Stimpson will oversee Isa Rodeo’s operations while it is under voluntary administration.
In a statement on Monday, the company said its appointment “provides an opportunity for the company to explore options for financial recovery and secure the best possible outcome for creditors, employees, the local communities”.
“Voluntary administration offers a chance to restructure the rodeo’s operations and financial arrangements,” Mr Brennan said.
“We will work diligently to identify all possible options, including restructuring, streamlining, or the sale of the business, to save this long-standing event that means so much to Mount Isa.
“We hope this is not the end of the Mount Isa Rodeo, but rather a second chance to secure its future by restructuring and reinvigorating this annual community festival.
“Both the Mount Isa Mines Rodeo and Mount Isa Mines Indigenous Rodeo Championships are iconic and important events for communities across the North West.”
Mr Brennan said the entitlements of Isa Rodeo’s employees, including wages, were protected under Australian law.
He said SV Partners would be in contact with all creditors.
Many businesses owed money in Mount Isa found out about Isa Rodeo’s voluntary administration from media reports.
Mr Brennan said the administrators would be in contact with all sponsors regarding the opportunity to continue to support the Mount Isa Rodeo and discuss options moving forward.
In the statement, SV Partners said the administrators would evaluate all options, including possible restructuring, sale of the business, or other initiatives, with the aim of achieving the best outcome for stakeholders.
“Our priority is to ensure the ongoing viability of the Mount Isa Rodeo,” Mr Brennan said.
“We are actively engaging with all stakeholders to develop a path forward that offers the best returns to creditors, and we hope to find a way to create a sustainable future for the event.”