Wouldn't surprise me what has gone on. Likelihood of market having being fully informed since suspension is doubtful IMO.
Only positives are directors are capped in wages claim
Did they have themselves structured as contractors etc etc. so they become creditors to add to leverage on votes etc etc
As we both know VA have to do their job but with limited budget and there is also reality of a somewhat " friendly " VA in some cases as opposed to brutal. I wonder if they had been using KPMG for advice as a safe harbour to keep it going this long or an advisor who regularly passes VA onto KPMG ?
I don't think it will be a pretty read and since before the 4D wasn't signed and lodged I assume they would have been getting advice and putting IMO distance between "events"
The ability , strategy to pick a appointment date to have this process basically finish at same time funds would be due ?
In liquidation
Employee entitlements
In most cases, the liquidation of a company terminates the employment of employees.
If there are funds left over after paying the liquidator’s fees and expenses, employees have the right to be paid their outstanding entitlements before other unsecured creditors are paid (priority claims). Employee entitlements are grouped into categories (or classes) and paid in the following order:
- outstanding wages and superannuation
- outstanding leave of absence (e.g. annual leave and long service leave)
- retrenchment pay.
Each class must be paid in full before the next class is paid. If there isn't enough money to pay a class in full, the available funds are paid on a pro-rata basis (and the next class or classes will be paid nothing).
If directors and their spouses or relatives are employees, their priority claims for the period they are a director, spouse or relative of a director are limited to a maximum of:
- $2,000 for outstanding wages and superannuation
- $1,500 for outstanding leave entitlements.
Directors and their spouses or relatives are excluded employees and are not entitled to any priority retrenchment pay for the period they are a director, spouse or relative of a director. Any amounts left owing after these priority amounts are treated as an ordinary unsecured claim along with other unsecured creditors (e.g. trade creditors).
Employees may also be entitled to make a claim against the Fair Entitlements Guarantee (FEG).
Sometimes, the liquidator may continue to trade the business for a short period to help in the winding up. If this happens, employee entitlements accruing during this period (on terms agreed with the liquidator) are paid out of available assets as a cost of the winding up and before other outstanding employee entitlements are paid.
Attempts to avoid employee entitlements
It is an offence for anyone to enter into an agreement or transaction with the intention of avoiding employee entitlements of a company.
If the company is in liquidation and the employees suffer damage or loss as a result of a person entering into such an agreement or transaction, that person is liable to pay compensation for the loss suffered. Employees have priority to any compensation recovered by a liquidator.
If you believe such an offence has been committed, tell the liquidator. You can also lodge a report of misconduct with ASIC.
(20min delay)