Being A Creditor (Emplyee) of a Company in Liquidation

[Feral]

Long story short, at the start of February the company I worked for went into liquidation.Apparently the scumbag owner reckoned he didn't need to pay Tax, Super or the pay increases as under the Awards. The Company was a profitable one.

Is there any one here that has been through a Liquidation as an employee?

Reason I ask is this is my first experience with it. Trying to get any sort of viable information out of the Liquidators is impossible. Can't even talk to the person in charge. ASIC wont say much but not their job to advise and FEG wont comment either, again not their job.

I as well as others are owed a sizable lump ( earmarked for a 4500 )

Any comments/experience good and bad are welcome

As a P.S. if it happens to you in the future, don't expect help from Centrelink cause you wont have a separation certificate

 

[Manpa]

Contact you local parliamentarian and see if they can give you any pointers.
Sorry to hear that you are in this predicament.
Ask the liquidator/ administrator if they are able to supply a seperate on certificate for Centrelink purposes.
Cheers

 

[bbayjohn]

You could start by reporting your lost super https://www.ato.gov.au/individuals/super/in-detail/growing/unpaid-super/

 

[Mickomarlin]

Government will reimburse lost wages but not super from my experience. I was backpaid a lump sum but took about 6 months to come through

 

[goldtruck59]

Not wanting to get too involved as I am one of the Scumbags as you put it with some misfortune some years ago.
I can tell you that the administrator will be dutiful to speak to all creditors. He will be more so if the company went into Voluntary admin.
You will get all your entitlements inc super as I understand it as they are covered now by ATO. Mickomarlin is correct at that it will take a long time to happen.
Running a business is a tough gig but there are some unscrupulous operators for sure. This scumbag lost $4M and I can tell you it hurts.
My team of 58 guys and gals got all their benefits.
There are winners and losers on both sides.

GT

 

[LONEWOLF]

Get as many ex employees together as you can and go see a Solicitor.... He can advise and if needed, Represent You and He will be able to sort the issue out a bit quicker than being an Individual.. I was lucky, My Union took care of the Solicitor..... As said before, the ATO will look after your Super and other Entitlements. Hopefully...

You Can't blame Ferel for the way he feels GoldTruck... Especially when his Super is suppose to be up-to-Date(with-in 3 months, one of the first signs of trouble) Sorry to hear this has happened to You too... One of the Hazards of being an Owner..... O

LW... Union Strong... Union Proud...

 

[Feral]

bbayjohn done that. It sorta sped up the downfall.

goldtruck59 this person is/was a scumbag. Not only are the "Legal" types after him but the not so "Legal" as well.

LoneWolf sorry, no Union. As for the solicitor, Tried to get it going but most were either not interested or to broke. No win, No fee basically halves theoutcome so to many not worth the hassle

MickoMarlin fortunatley yes, FEG does cover wages, holiday pay but only 6 weeks back on backpay. Unpaid Super I think goes through the Tax department

Back at work now. Should off said that. It was a hard 3 months though. Try talking to the Liquidator on numerous occasions. What I found out was the longer I had them on the phone, the more they contradicted themselves.He didn't like it when he got caught out. I ended up changing the name in my phone to penis cranium Looks like at least a month to go

 

[LONEWOLF]

Lol At least you know who's calling.. :lol:

LW...

 

[HeadsUp]

I was ripped for a couple of thousand by a customer who folded.

The administrator stretched it out for more than 7 years without releasing any money to creditors, every time I enquired where my money is he would send out a bullsheet letter of waffle To fob me off

I suspect the company fleet equipment was re-appropriated back to ownership of the former directors and that they started up with another name .

I didnt bother chasing it more although some of the persons involved appeared in the courts a couple of years ago over dodgy political dealings and fraud.

Without being defamatory I will throw random letters at the wall Obed . obeed . Edddie . Beid.

Accounting like mentioned above should be illegal but for many decades ASIC and ACCC have been a neanderthalistic clusterfukk of incompetent bumbling ****y heads .

The current banking enquiry however Has me absolutely gobsmacked by its effectiveness . I would have bet money at 20:1 odds that it would have ended up as yet another coverup by the backroom boys club.

 

[LONEWOLF]

Me Too, Gobsmacked at what is coming out of that little banking get-together.....
Sucks when you get stung, only to hear that They start again a few years later... We have a Developer here on the Goldie Who did just that. Went down owing $10m to local tradies..... Now he has 'interstate Tradies' working for him... No Local would touch him.... They will learn the hard way too....
I was offered to set-up a Business and offered a few High-rises to install Air-con on... No Effin Way... seen what they did to other Subbies...
All to easy to throw your Invoices in the bin and not pay you...

Mirror Men- ASIC and ACCC... They always say.. We Will Look into it... 8)

LW....

 

[pete165]

Have not had the bad luck to go through this type of thing. All I can say is I hope that it all works out. Hope that you get what is owed although from what is being said it looks like it might take time. Sorry to hear this bad news but glad to see you working again.

 

[Mr Magoo]

Been through two plus a thieving employer who dodged his super payments and also ignored award.

Once the liquidators are involved the costs go through the roof. Fees are insane. I just had a look through some accounts they sent me. The period is for less than seven months a few years ago.

Sales $302,000
Sale of bushiness $359,000
Salary and wages $142,000

Liquidators fees and legals $193,000 (fees were $163K)

Although in that case I did receive all my money while in the first instance was offered 2.5c in the $ (about $5K about 25 years ago. Just walked out the solicitors and tossed all the papers in the bin. Had a gut full). The third is on going.

Good luck. It's all about time.

 

[Feral]

What i can't work out is according to ASIC's web site, a meeting is supposed to be called of all creditors to approve liquidators costs. Being a Priority/ Primary creditor, I must off blinked and missed it.

 

[Mr Magoo]

What i can't work out is according to ASIC's web site, a meeting is supposed to be called of all creditors to approve liquidators costs. Being a Priority/ Primary creditor, I must off blinked and missed it.

I blinked to. The day we all got an inkling about it, started out like any other day. Working away, busy as usual then half a dozen men and women wearing black and carrying brief cases walk in the door and stopped work. Almost instantly dismissed about a third of the staff.
Within 48hrs the word was out that the business was in heading for liquidation and what was a very busy business one day then became a one client a day show. Suppliers banged the door shut, some even being abusive on the phone.

I have accounts from the liquidators that show it went on at least a year (I'm thinking about 18 months).

Tax avoidance again.

 

[Feral]

Yer. We all got a phone call on job sites all over "Pick all your gear up and back to the shed". Last day many of us worked for for the next 3 months. Most like myself had zero income cause there was no severance note.

 

[Trash]

Shocking news Feral , very sorry to read this thread

Local mayor may pull some strings

A current affair luv digging into this stuff

 

[LONEWOLF]

That's why I work/worked on Union Sites Only... :/ Reason being For a Company to get work on a Union Site , they have to prove themselves Worthy and Financial... Only happened to me once... Lost money but gained a site box full of Company tools... ]

LW...

 

[Toysandthings]

That happened to me too decade+ ago.
For 6 months centrelink unable/refusing to help due to
moneys being owed to me despite taking a year
to sort out and the geers scheme paying it eventually.

Just leaves u years behind in your life.

Takes a while to get a replacement job to.

I had an ill partner too and ended in business
for myself now as u see it.

 

[Chiron52]

20+ years ago I started a small business in Sydney's west.
I was getting a ton of work from one particular company and thought my business was booming. Suddenly, no more cheques coming through although I was still doing heaps of work.
Queries received the usual replies ........ cheques are in the mail, accounts are sending payments out at the end of the week, etc, etc.
I stopped doing any more work for them. I also chased them for months for payment, all to no avail. I had bills to pay and an employee's wages to find.
Next I receive a parcel in the post from liquidators with a list of creditors. My business was number 100 on that list. The creditors said that after looking at the books, the company should be able to trade it's way out of trouble. Weeks later, another letter from the creditors stating that they had found a 2nd set of books and that the 1st set were fake. Creditors at the top of the list got paid. The top names on that list were the board of directors of the company. The *******s got paid out before anyone else. I never received anything that was owed to me. This mess almost ruined my new little business. They even had the nerve to threaten legal action against me for tipping off a friend who was also doing business with them. *******s! Scum! A***oles! Lucky for them we don't live in the US. bang,bang!