Earlier today, Axsesstoday Limited (ASX: AXL, the Company) announced that it had appointed three Deloitte Financial Advisory partners as Joint and Several Administrators (Administrators) of the Company and will do so to some other Group entities.
This news follows swiftly on from the additional missteps of the week before (which we covered in our Weekly) and which was prompted by the Senior Lenders advising the Group that they were unable to continue to support the business with ongoing waivers of breaches of the terms of the finance documents.
AXL has been under a voluntary suspension since September as additional problems were discovered, covenant waivers granted and variable consent fees paid (or not to certain classes of creditors).
The Group continues to operate on a business as usual basis while the Administrators pursue sale and recapitalisation options. On this point, an Administrator seemed positive, expecting strong interest from onshore and offshore investors with the voluntary administration process itself allowing greater flexibility for a restructure.
It is obviously very early days in the next part of Axsesstoday's journey but should the above play out as expected, it is a much better outcome for all debt holders than a liquidation scenario, where the deep subordination of the Simple Corporate Bond (AXLHA) would be adversely affected indeed.
