Every single creditor of failed delivery giant Deliveroo will get their money back and some will receive as much as 342 per cent of what they’re owed.
The unprecedented outcome came after creditors voted on a proposal which will see Deliveroo’s parent company Roofoods reportedly put forward $19 million to cover their debts.
Deliveroo’s Australian branch went into voluntary administration last month after it failed to turn a profit.
The move shocked delivery drivers, customers and restaurants, with Deliveroo drivers left stranded while restaurants had no delivery platform as the app was suddenly switched off on November 16.
In the early stages of the administration, documents stated that riders were considered contractors rather than employees, which disqualified them from entitlements and placed them in the “unsecured creditors” category, leaving many doubtful they would receive anything.
However, it is now riders who are set to get the most money back.
Deliveroo riders are, on average, receiving 342 per cent of their entitlements. That’s good news for the 14,000 riders who lost their jobs because of the company’s demise.
Employees are also being given a generous payout, at 169 per cent of their salary and other entitlements. There were over 100 workers who instantly lost their jobs at Deliveroo’s head office.
Creditors attended a virtual meeting on Wednesday and voted on the proposal, called a Deed of Company Arrangement (DOCA).
Michael Korda, Craig Shepard and Andrew Knight of KordaMentha were appointed as the administrators and have now also been appointed as the trustees to distribute the funds.
The majority of the money will be handed out next month and everything should be paid back by the end of April next year.
Dozens of cafes and restaurants across the country are owed money by Deliveroo, including big brand names like Merivale Group, Grill’d, Betty’s Burgers and Zeus Street Greek.
It’s estimated to be $1.83 million owed to restaurant partners in total.
Customers are owed nearly a quarter of a million dollars because they paid for gift cards and credit on the Deliveroo app.
Landlords of their head offices are also believed to be owed money.
“Restaurant partners, customers, suppliers and other unsecured creditors are estimated to receive 100 per cent of their claims,” KordaMentha wrote in a statement.