$250K+ OWED: Creditors lose in liquidation of Bundy company
TWENTY-one unsecured creditors, claiming more than $256,000 from a former-Bundaberg company, are expected to receive none of the money they're owed.
A creditors meeting held in Brisbane last month updated a mixed pool of secured, priority and unsecured creditors on the status of the liquidation of Mak Electrical Bundaberg Pty Ltd.
The company was ordered to be wound up in insolvency by the Federal Court of Australia on April 15, 2016.
But more than two years after the appointment of liquidator Peter Anthony Lucas, the winding-up process is still not over.
A creditors report released in May revealed claims totalled $581,488.
Of the substantial sum, $256,975.01 made up the 21 unsecured claims, with the remaining $324,512.00 stemming from unpaid employee entitlements.
"There is likely to be no return to unsecured creditors," Mr Lucas told the NewsMail.
The report outlined $70,520.03 worth of distributions covered by the Fair Entitlements Guarantee had since been made to employees of Mak Electrical.
Some of the more substantial claims from both priority and unsecured creditors were by the Deputy Commissioner of Taxation ($392,763.41), Actrol Parts Pty Ltd ($36,864.87), Credit Corps Services Pty Ltd ($13,761.03) and Ergon Energy ($2,359.70).
The report estimated the dividend for all unsecured claims would be nil.
It stated that any return to creditors in the liquidation depended on the successful outcome of outstanding matters such as unpaid debts owed to the company.
During his investigation of the company's financial records, Mr Lucas found Mak Electrical had an accounts receivable balance of $114,908.59.
Of this amount there was a significant number of debtors owing the company - $96,000 of which he was able to collect.
One remaining debtor entered a debt agreement and will pay a total of $322.32 on a monthly basis into 2020, while the remaining debts were determined as uncollectable.
Investigations also revealed the director to the company, Matthew Kummerow, owed $101,202 to the company in the form of an outstanding loan.
However, as Mr Kummerow became bankrupt in 2017, the Australian Financial Security Authority (AFSA) informed Mr Lucas it was unlikely there would be any kind of dividend distribution from the director's bankrupt estate.
"Unless a dividend distribution from the director's bankrupt estate becomes payable, there will be no recovery to the administration in relation to the claim," Mr Lucas said.
Nonetheless, Mak Electrical was registered as a creditor of Mr Kummerow's estate, meaning that should a dividend become payable in the future, Mr Lucas would be informed.
A demand letter regarding an insolvent trading claim against Mr Kummerow for $150,618.19 has been issued by Mr Lucas.
Mak Electrical Bundaberg is not to be confused with Laser Electrical Bundaberg South - a franchise not related to the matters.