Berrigan’s Amaroo aged care residents and their families have been assured operations remain in “status quo” despite administrators being appointed.
The facility which has 27 independent living villas and a 30 bed hostel is being managed by SV Partners, the company appointed after the facility went into voluntary administration.
Amaroo employs 59 staff members and was previously managed by a board of directors of six.
Richard Cauchi, director of SV Partners in Melbourne, said their top priority was the health and wellbeing of the residents.
“We are trying to find a resolution that suits the community,” Mr Cauchi said.
“We don’t like to disrupt elderly people – they are paramount in our thinking.”
Mr Cauchi said the first creditors meeting was held last Friday, with the second and final meeting to be held on or by August 8.
Amaroo’s creditors include local electrical, plumbing, hardware, supermarket, vehicle and stationery businesses and the Australian Tax Office, amounting to around $1.2 million.
Voluntary administration is a formal restructuring process designed to maximise the chances of a business, or part of a business, continuing its operations, or to result in creditors receiving a better return than would result from an immediate closure and liquidation.
In the initial notice to creditors, SP Partners advised “we are presently assessing the financial position of the company (Amaroo) and we are responsible for controlling the company’s assets, investigating the company’s affairs, reporting and providing opinions to creditors and other stakeholders, as well as holding meetings of creditors to make decisions on the future of the company.”
Michael Curtain, son of one of Amaroo’s pioneer founders Bernard Curtain, said the priority for residents and their families was to ensure both the hostel and the independent living villas would remain open.
“My biggest concern for the residents and families is to get assurances it will continue on as a going concern,” he said.
“It is also really important the residents are fully informed and assured of what is happening. For some residents, their families live away from Berrigan, so it is important when information is passed on to them, they have a support person to help process the information.”
Mr Cauchi said SV Partners would ensure the administration period was as “seamless as possible” and that staff and residents were informed of the situation.
“We have met with the staff and residents. We are also working with the federal, state and local governments to find potential resolutions,” he said.
Amaroo also provides between 1200-1500 meals a month for Berrigan Hospital and Meals on Wheels, across both Berrigan Shire and Edward River Council areas.
Mr Cauchi said these services would also continue during the administration period.
Amaroo was established by a group of local residents, keen to see aged care facilities available in Berrigan. It was initially partly funded by government and local people.
Board members are volunteers, Mr Curtain said, who have donated their time and resources since Amaroo was established.
“From mowing lawns to organising bingo, Amaroo’s community-based board has done their best,” he said.
Mr Cauchi said the board was “well-meaning” and a not-for-profit organisation.
“It’s not a matter of wrongdoing necessarily, it’s a matter of what has gone on over the last two to three years during the COVID period which has created a few hurdles that in a larger organisation may have been easier to overcome,” he said.