Ferrier Hodgson, the administrators of Whitcoulls' previous owners, REDgroup Retail, have proposed that its unsecured New Zealand creditors be paid out at 3c in the dollar.
The proposal, or deed of company arrangement (DOCA), will be put to creditors at a so-called "'watershed" meeting set down for Thursday.
"Based on our investigations, we do not believe that any dividend would be payable to unsecured creditors in any of the companies should they be placed in liquidation," said Ryan Eagle, administrator and Ferrier Hodgson partner.
"As a result of this analysis we recommend to creditors that the proposal for a DOCA be supported," he said.
REDGroup went into voluntary administration in March, owing New Zealand unsecured creditors $21.5 million.
The watershed meeting follows the administrators' recent sale of the Whitcoulls and Borders businesses to the James Pascoe Group, and the sale of the Bennetts bookstores and 10 Whitcoulls bookstores located in New Zealand airports.
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