In March, this publication was the first to flag concern over the situation surrounding companies associated with Jahangir Khan's Reacon Holdings and Mail Marketing Works. Creditors and staff were not getting paid, or paid late under sufferage. Now, two of Mr Khan's companies are officially in administration, with two continuing to be in business.
Inside this office building is the HQ of Reacon Group, still registered with ASIC but subsidiary Reacon Australia is in administration
The appointed administrators of Reacon Australia Pty Ltd (ACN 158922242) and Mail Marketing Works Pty Ltd (ACN 069832211 incorporating mmw3degrees) are Cathro & Partners - Simon Cathro and Andrew Blundell. Mail Marketing Works also appears to be the parent company of trading entity mmw3degrees. Readers may recall Cathro & Partners are also handling the administration and DOCA for Starleaton, last year.
As of April 8th 2025, these administrators have full control over the two Reacon companies and wish to 'continue to trade in order to receive an optimal outcome for the creditors.' Cathro will also pay the wages of employees, from April 8th, but entitlements accrued before then will come under the priority unsecured creditors category.
Many of these creditors will be staff owed entitlements and superannuation. Also trade creditors, who have been asked to continue to: 'supply of goods or services on usual trading terms and conditions.' Such trading under administration is guaranteed personally by the administrators but 'any debts incurred by the companies prior to the date of (Cathro's) appointment will be an unsecured claim against the companies.' The full total of these debts is not yet available and should be know by the time of a first creditors meeting.
This First meeting of creditors is scheduled for Tuesday April 22nd at 1pm, via Microsoft Teams. A login is required. If you believe you are a creditor, contact Cathro Partners to access the login. However, as there is already a winding-up order against Reacon Australia Pty Ltd, from an unpaid creditor, it might be that the company is liquidated before any DOCA can be put in place, or voted upon at a creditors' meeting.
Cathro & Partners have already stated that recapitlisation under a DOCA, if approved, ( Deed of Company Arrangement), might be possible for these companies. It is not currently clear where this recapitalisation might come from but two of Mr Khan's companies are currently still registered with ASIC. Whether these companies might be considered 'related entities' is also not clear right now, as one is subject to a 3rd party acquisition. They are:
- Reacon Group Pty Ltd (ACN 625 934 974) - Registered at Rhodes, NSW (Believed to be subject to an acquisition)
- National Mailing & Marketing Pty Ltd (ACN 059 249 455) Registered in the ACT
Another entity called Connekta, a digital marketing business, appears to be part of the Reacon Group, with its website directing to Reacon's website.
It's looking like a familiar scenario: company enters admin - a DOCA is proposed - DOCA accepted by creditors, in order to at least get some cents in the dollar owed - DOCA either fails or expires - company is liquidated and creditors get next to nothing in return. During a DOCA, all legal proceedings against a company are suspended and staff cannot claim FEGs entitlements from the government scheme unless the company is liquidated. After 13 months, reportedly none of the Starleaton staff have received any owed entitlements, for example. That DOCA has 11 months to run - hopefully former staff will get at least something.
Previous coverage of this story is HERE and HERE
We wish all creditors and staff of Reacon Australia and Mail Marketing Works, the best possible outcome.
Do you know more? You can email Andy McCourt HERE
