Company acting chief executive Tony Chapman said the deed of arrangement would result in a significant amount paid to unsecured creditors while returning control of the company to its directors from January 19, 2004.

However, Chapman said that APA had lost more than 30% of its business while the government spent seven months working out its excise LPG regime.

The company, which accounts for around 90% of Australia's automotive LPG tank business, appointed administrators in September, the step before receivership, and organised a strong publicity campaign to have the excise decision overturned.

The Government listened and reduced the amount of the excise from 2008 to a rate of 12.5c a litre, compared with the 38.1423c a litre currently applied to petrol, roughly where APA said it had to be to survive.

Under the new government policy, new vehicles either LPG fuelled or capable of dual-fuel operation as original equipment will receive a $1000 capital grant.

LPG accounts for around 6% of the national transport fuels market with around 550,000 customers