Overview
Claim Central Pty Ltd and three related entities (the Group) operated a national insurance and property claims management business, at its peak employing more than 200 staff across Australia.
Following the loss of several major contracts against a backdrop of rising operating costs, the Group experienced significant financial distress. After exhausting options to restructure, recapitalise, or sell the business, Olvera was appointed as Voluntary Administrators on 17 October 2025.
Challenges
- Rapid Workforce Transition: With over 200 employees across the country, managing workforce reductions, calculating entitlements, and maintaining clear stakeholder communications required immediate and careful coordination.
- Ongoing Trading Viability: An urgent assessment was needed to determine whether the business could continue operating or required an orderly wind-down, with decisions carrying significant implications for employees, creditors, and clients.
- Complex Group Structure: The administration spanned four related entities, each with intertwined assets, liabilities, and creditor classes, including intercompany claims that would have added material uncertainty in a liquidation scenario.
- Secured and Unsecured Creditor Management: Balancing the interests of a secured creditor holding a general security interest over the Group against the competing claims of unsecured creditors and employees required active and transparent engagement throughout.
- Maximising Creditor Returns: Identifying a structure that would deliver a better outcome than liquidation, while managing the Group's deteriorating financial position, was central to the engagement.
Our Approach
Olvera assumed control of the Group and immediately undertook an urgent viability assessment of ongoing operations. Once it became clear that continued trading was not sustainable, we transitioned to a structured wind-down designed to preserve value and protect stakeholder interests.
We managed all employee-related matters, including workforce reductions, the calculation and communication of entitlements, and ongoing engagement with staff throughout the process. Key personnel were retained to support debtor recoveries and manage outstanding claims.
Our team secured and realised physical assets across the Group, maintained regular reporting to the secured creditor, and engaged proactively with all stakeholders, including insurers and unsecured creditors, on the administration's progress.
We conducted a comprehensive review of the Group's financial position, including its assets, liabilities, and historical trading performance, and investigated the Group's affairs to identify potential claims available in a liquidation scenario.
Following this review, we assessed and ultimately recommended a Deed of Company Arrangement (DOCA) involving the pooling of assets and creditor claims across the Group. A report to creditors was prepared pursuant to section 439A of the Corporations Act 2001, setting out our findings and recommendations for the Group's future.
Results
Creditors resolved that the Group enter into the proposed DOCA, delivering a materially better outcome than liquidation would have provided.
Employees received full payment of their entitlements at 100 cents in the dollar, compared to an estimated return of between nil and 55 cents in the dollar in a liquidation scenario. Participating unsecured creditors are expected to receive a modest return under the DOCA, compared to no dividend in a liquidation scenario.
This outcome was achieved through a combination of asset realisations, debtor recoveries, sustained stakeholder engagement, and the implementation of a pooled DOCA structure, which also resolved the complexity and uncertainty that would have arisen from intercompany claims in a liquidation.
Key Drivers of Success
- Swift viability assessment and decisive transition to a structured wind-down preserved recoverable value for all stakeholder groups.
- Proactive and transparent communication with employees, creditors, and the secured creditor built the trust necessary to support a consensual DOCA outcome.
- A pooled DOCA structure eliminated the complexity and risk of intercompany claims, maximising returns and delivering certainty to creditors across the Group.
