THE failed trucking company 1st Fleet owed about $100 million when it collapsed and possibly traded while insolvent, its liquidator says.
"We had our initial suspicions [about trading while insolvent] and we think they have been confirmed, but we continue to do deeper investigations," Antony de Vries, a partner at the liquidator de Vries Tayeh, said.
Mr de Vries said $8 million in employee entitlements - wages, redundancies and holiday pay - had been paid through the federal government's general employee entitlements and redundancy scheme (GEERS), which makes payments to employees of collapsed companies.
But superannuation payments were in a "state of flux", he said, in part because of $5 million owed by debtors to 1st Fleet. His firm is considering legal action to recoup that money. "We've got a debtors' ledger of around about $5 million that we're looking to collect, and along with the asset sales and some litigation, we should be able to get some money towards the superannuation," he said.
"It's sad, some of the customers of 1st Fleet are taking advantage of the liquidation and not paying their accounts. That leaves us in the position that we will have to, if we can't negotiate with these people, take these people to court and then have full collection procedures. That means lawyers get paid lots of money, so it's a little unjust."
Asset sales have brought in about $3 million. The Transport Workers Union has complained that truckies who entered into lease-to-buy contracts for trucks have been left in the cold after 1st Fleet's collapse. Mr De Vries confirmed discussions were taking place on "one of the most controversial practices undertaken by 1st Fleet's management".
The comments follow a third creditors' meeting last week, in which creditors agreed to pool the assets and liabilities of 1st Fleet and its six related entities into one vehicle. 1st Fleet had about 1000 employees - 600 permanent and 400 sub-contractors - when it entered administration on May 22. Its revenue for the previous year was about $133 million.
At the time of its collapse, the 1st Fleet sole director Stephen Brown blamed the French financier Coface for pulling its funding, and went overseas.
He is now back in Australia and is co-operating with the liquidator, Mr de Vries said.
Frequently Asked Questions about this Article…
What happened to 1st Fleet and why is it in liquidation?
1st Fleet, a trucking company, collapsed owing about $100 million and entered administration on May 22. Its liquidator, de Vries Tayeh (partner Antony de Vries), says the business possibly traded while insolvent and is under deeper investigation.
Is the liquidator investigating whether 1st Fleet traded while insolvent?
Yes. Antony de Vries said the liquidator had initial suspicions that 1st Fleet may have traded while insolvent, believes those suspicions have been confirmed, and is continuing deeper investigations.
Have employee entitlements been paid after 1st Fleet’s collapse?
Some employee entitlements have been paid. About $8 million in wages, redundancies and holiday pay was paid through the federal government’s GEERS (general employee entitlements and redundancy scheme).
What is the situation with 1st Fleet superannuation payments?
Superannuation payments were described as being in a 'state of flux.' The liquidator noted a debtors’ ledger of around $5 million owed to 1st Fleet that they are trying to collect to help cover superannuation shortfalls.
How much has the liquidator recovered from asset sales and debts so far?
Asset sales have brought in about $3 million so far. The liquidator is also pursuing around $5 million in outstanding debtor invoices and may consider legal action to recover that money.
What did creditors decide at the recent creditors’ meeting?
At a third creditors’ meeting, creditors agreed to pool the assets and liabilities of 1st Fleet and its six related entities into a single vehicle to manage the winding-up process.
Are drivers and truck owners affected by 1st Fleet’s collapse, and why?
Yes. The Transport Workers Union complained that truck drivers who entered lease-to-buy contracts for trucks have been left out of pocket after the collapse. The liquidator confirmed discussions about this controversial practice undertaken by 1st Fleet’s management.
What did 1st Fleet’s director say about the collapse and is he cooperating with the liquidator?
Sole director Stephen Brown blamed French financier Coface for pulling funding and initially went overseas. He has since returned to Australia and, according to the liquidator Antony de Vries, is cooperating with the liquidation process.
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