KADDY ceases operations and executes Deed of Company Arrangement

KADDY Limited (ASX: $KDY) has ceased its operations as of the current quarter ending on 30 June 2023. The company announced the execution of a Deed of Company Arrangement (DOCA) on 30 June 2023, following the appointment of Voluntary Administrators and subsequent liquidation of several entities within the Group.

Executive Commentary on Ceasing Operations and DOCA Execution

The Company is holding discussions with a range of investors and funders and will provide updates to shareholders as appropriate. On 4 May 2023, Rajiv Goval, Chris Johnson, and Joseph Hayes of Wexted Advisors were appointed as Voluntary Administrators of the entities within the Group, pursuant to Section 436A of the Corporations Act 2001. The Administrators were to undertake an urgent assessment of the Group, to determine to sell the business as a going concern or recapitalisation via Deed of Company Arrangement (DOCA). On 8 June 2023, at a meeting of creditors (held for each entity), several entities were placed into liquidation. The DOCA gave effect to the Deed Proposal made by Lecca (A) Pty Limited (or party nominated by Lecca Group Pte Limited) which was approved by creditors of the Company at the creditors' meeting held on 8 June 2023. Upon the DOCA being executed, the voluntary administration of the Company terminated. The DOCA only relates to the listed entity and does not extend to any of its wholly owned subsidiaries, the majority of which are now in liquidation.

Summary of Ceasing Operations and DOCA Execution

KADDY Limited has ceased its operations and executed a Deed of Company Arrangement (DOCA) on 30 June 2023. The company's subsidiary CGWDH Pty Ltd was returned to the control of its directors on 19 June 2023. The DOCA gave effect to the Deed Proposal made by Lecca (A) Pty Limited, approved by creditors of the Company. The Company is in discussions with investors and funders and will provide updates to shareholders as appropriate. Shareholders should note that the holders of convertible loan notes are not participants in the DOCA, and all liabilities associated with the convertible loan notes remain as a liability of the company going forward.