Collapsed Coast company could owe up to $5 million
BREAKING: Staff sacked days before Christmas after the collapse of the administrative arm of SmartCity Vocational College could be owed about $2.6 million in annual leave and other entitlements.
That figure was disclosed to creditors at a recent meeting in Maroochydore.
Liquidator Paul Nogueira, of Worrells, now has the job of verifying that figure to ensure the almost-300 SC Admin Pty Ltd staff owed money are paid under the Federal Government's Fair Entitlements Guarantee legislation.
Liquidators say SC Admin acted as trustee for the SC Administrative Trust and was responsible for employment services for Sunshine Coast-based SmartCity Vocational College.
SC Admin, which was directed by James Spong, also owes the Australian Taxation Office about $1.9 million while other unsecured creditors are owed almost $400,000.
- Company had solvency concerns six months before going bust
- Staff recall 'fire sale' before company went bust
The company also had unsecured credit card debts of more than $45,000 and went into liquidation with only $223.67 in the bank but an "unknown" amount of cash on hand.
Some of those who attended the creditors meeting earlier this month registered claims for individual amounts owed to them ranging from $3000 up to $35,000.
Landlords are also owed following the collapse of the administrative company.
"It's still pretty early days," Mr Nogueira said of the investigations.
He hoped to have verified the $2.6 million amount owed to staff in the next few weeks to ensure the entitlements scheme process could begin as soon as possible.
Creditors at the meeting on January 3 resolved to have Worrells remain as liquidators, approving payment of liquidators' fees up to $57,944.36.
Mr Nogueira urged staff affected to lodge a claim to ensure their entitlements were covered by Federal legislation, believing they had up to 12 months from his appointment (December 16, 2016) to do so.
The Daily has attempted to contact Mr Spong for comment.
SmartCity Vocational College has campuses across the country in Armadale, Bundaberg, Cairns, Caloundra, Elizabeth, Fairfield, Gympie, Hervey Bay, Hobart, Inala, Ipswich, Kippa-Ring, Launceston, Maroochydore, Morayfield, Rockhampton, Toowoomba and Townsville