Bundaberg Blocks and Pavers forced to close
BUNDABERG Blocks and Pavers have gone into liquidation following a ruling by the Brisbane Supreme Court, but owner David Grohn isn't ready to give up yet.
The court action came as Brisbane based supplier Sunstate Cement applied to wind up the East Bundaberg business to recover its $132,000 debts owed.
Supreme Court documents showed Bundaberg Blocks and Pavers also owed Cement Australia $35,000 and Australasian Agencies $195,000.
Money lender International Corporate Funders lent Bundaberg Blocks and Pavers $186,000 to pay Sunstate Cement, Cement Australia and a $5500 debt to WorkCover.
In court, Bundaberg Blocks and Pavers argued the business was not insolvent as it had entered into a $3.95 million contract in October 2014 to sell its business, land and other assets.
The company argued once it had received the payments it would have enough money to pay its debts.
But the court ruled the company should be liquidated and appointed Bentleys Chartered Accountants Brett Hawkey to manage the company going forwards.
Mr Hawkey did not respond before the NewsMail went to print.
The June 5 judgment was released on Friday and stated the creditors would be reimbursed.
Despite the liquidation, when the NewsMail spoke with Mr Grohn yesterday, he was still hopeful the sale would go through.
"The purchases are negotiating with the liquidator fairly heavily at the moment," Mr Grohn said.
"I can't say too much because I've had to sign a privacy agreement.
"But it's looking very strong, that's all I know at this stage."
But Mr Grohn said even if the sale did go through, he wasn't sure if he'd get any money after the creditors were paid.
"I'm not 100% sure what's going to come out in the wash," he said.
Mr Grohn said his eight employees were informed.
"I've spoke with my staff and explained the situation to them," he said.
He said some staff had already been laid off in the months leading up to the court case.
"Obviously we'd scaled back at bit," Mr Grohn said.
But in terms of his own future, Mr Grohn said it was undetermined.
"To be honest, I haven't even thought about it because I'm more interested in the situation at hand," he said.
Mr Grohn said he was still focusing on the business being sold but declined comment on who that may be to.
Read about the trio forced into homelessness by the liquidation here.