G+T has advised Roofoods Ltd (Roofoods) in relation to the voluntary administration of its Australian subsidiary, Deliveroo Australia Pty Ltd (Deliveroo). Andrew Knight, Craig Shepard and Michael Korda of KordaMentha were appointed voluntary administrators of Deliveroo on 16 November 2022 following our client’s decision to exit the Australian market amid challenging economic and market conditions.

G+T assisted the publicly listed UK entity Roofoods to develop and propose a Deed of Company Arrangement (DOCA) which, at a meeting of Deliveroo’s creditors on 21 December 2022, was overwhelmingly supported by creditors. The DOCA provides $9.5 million to be paid to employees, riders, restaurant partners and suppliers by early 2023 and a further $9.3 million will be made available for all remaining creditors and will be distributed from April 2023.

The DOCA and market exit involved complex restructuring, employment and tax issues which were required to be resolved in an accelerated timeframe to achieve Roofoods’ overarching objective of payments being made to creditors on an expedited basis, including enhanced ex-gratia payments to Deliveroo’s employees and riders (above and beyond their statutory entitlements) and restaurant partners, customers, suppliers and other unsecured creditors estimated to receive 100 per cent of their claims.

Roofoods and G+T worked closely with the Restructuring Services Team at KPMG to formulate the DOCA which was responsive to Deliveroo’s unique business model and industry and a testament to the positive outcomes which can be delivered for companies and their stakeholders by the flexibility of the voluntary administration process in Australia.

The G+T team was led by its national Head of Restructuring + Insolvency Partner Peter Bowden with support from Special Counsel, Anna Schwartz and lawyers Megan Lowe, Becci Cartoon, Caroline Syzlkrot, Peter Hession and Stephanie Cook and other team members from G+T’s national R+I practice group. Supporting the Restructuring + Insolvency team were Employment Partner Tom Brett, Tax Partner Julian Cheng and lawyer Matthew Charman and other G+T lawyers across the firm.

Pete commented “We are very pleased to have advised Roofoods on this complex and delicate administration that has resulted in a very positive outcome for Deliveroo’s employees, riders, suppliers and other stakeholders. Drawing on the expertise of the wider G+T team, this is an excellent example of G+T’s ability to provide a full-service offering and navigate complex issues in an accelerated timeframe to deliver on our clients’ objectives.”

Gilbert + Tobin’s Restructuring + Insolvency team is recognised by all major legal directories. Gilbert + Tobin won Insolvency & Restructuring Deal of the Year at the 2022 Australasian Law Awards and was awarded Restructuring & Insolvency Law Firm of the Year (Australia) 2021 and 2020 by Global Law Experts.

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