Newcastle Jets in liquidation
DOZENS of unsecured trade creditors of Nathan Tinkler’s failed Newcastle Jets operation face a disastrous outcome, with liquidators saying they won’t receive any money unless legal action is successful.
Creditors voted unanimously at a meeting in Newcastle on Thursday to place Newcastle Jets Football Operations, that buckled under the weight of more than $22 million in debt, in liquidation.
The black hole at the middle of the company means unsecured trade creditors, owed about $1.1 million, will get nothing unless an insolvent trading claim is successful.
Creditors, including one representing several Tinkler entities, voted to appoint James Shaw, of Shaw Gidley, as liquidator.
Mr Shaw said there was not even enough money in the failed company to pay the liquidator’s fees.
His firm becomes a priority creditor and will be paid about $130,000 in administrator’s fees, but will conduct the liquidation free of charge.
The Herald revealed on Saturday, that when Mr Tinkler placed the company in voluntary administration in May it had $605 in the bank, $88 in office petty cash, gym equipment, some outdated merchandise and a 2009 Hyundai i30.
Mr Tinkler owns the company and his sister, Donna Dennis, is the sole director.
‘‘The company is clearly very insolvent, has no licence, has no business,’’ Mr Shaw said.
‘‘The only option available that makes any practical sense is to resolve to place the company in liquidation.’’
The meeting heard there was ‘‘potential’’ for a ‘‘small return’’ from the company for priority unsecured creditors, including employees and players.
About $1.5 million is owed in wages and superannuation and employees will be able to apply for assistance under a Federal Government scheme designed to help people who lose their job due to insolvency.
For unsecured trade creditors, including local mum-and-dad businesses, the only hope of a return is if legal action is successful.
Creditor Graham Habgood urged the Australian Securities and Investments Commission to investigate the string of Tinkler companies placed in liquidation in the past few years.
‘‘They have to do something, it can’t be allowed to continue,’’ he said.
Mr Shaw confirmed he would investigate the role of parent company Hunter Valley Sports Group in the collapse.
‘‘We are waiting on information from Hunter Valley Sports Group to properly assess the financial position of that entity,’’ he said.
The meeting added heat to a battle that began last week between FFA and Shaw Gidley, after Mr Shaw issued his latest creditor’s report that FFA labelled ‘‘misleading’’ and ‘‘inaccurate’’.
Mr Shaw said that FFA requested he ‘‘make a statement’’ to the meeting, but he refused.
‘‘FFA has a number of concerns with comments on matters within my report,’’ he said.
‘‘We largely agree to disagree on a broad range of issues.’’
Mr Shaw agreed to inform creditors that FFA withheld $300,000 in grant funds from the Jets earlier this year due to a ‘‘right of set-off’’ against money the FFA believed the Jets owed it.
He said there was also a dispute about the amount stated in the report that could be potentially recovered from FFA under insolvency laws, with FFA claiming it had been ‘‘overstated’’.
‘‘I take a different view,’’ Mr Shaw said.
source:- www.newwcastleherald.com.au
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