Good Impressions creditors approve repayment plan that protects director

The Sydney sheetfed printer collapsed on 5 March 2012 with debts that were ultimately calculated at $4.3 million. John Vouris from Lawler Partners was appointed administrator.

Vouris told ProPrint that unsecured creditors would not get any money back as the administration fees exceeded the $200,000 settlement figure.

However, he said the Federal government's General Employee Entitlements and Redundancy Scheme had provided staff with all their entitlements, excluding superannuation.

Despite Good Impressions' collapse, director Peter Edwards was allowed to keep trading after agreeing a Deed of Company Arrangement on 9 May with creditors that obliged him to repay $650,000 in 18 monthly instalments.

The deed was terminated on 1 November and the firm liquidated after Edwards only made one payment.

[Opinion: Do forensic checks before extending credit]

Creditors had been considering pursuing legal action, said Vouris.

However, Edwards then proposed a $200,000 settlement that would protect him from all present and future litigation. Creditors accepted the proposal at a meeting on 28 February because they weren't prepared to fund legal action, added Vouris.

Edwards paid $100,000 up front and is required to pay the rest in eight monthly instalments.

Edwards did not respond to ProPrint's request for comment.

Meanwhile, Vouris said he found no evidence of a merger between Good Impressions and Sydney Allen Printers.

Edwards told ProPrint in August that the two firms had reached a "handshake deal" to merge, however Vouris said no official deal was ever reached.

Sydney Allen subsequently moved into Good Impressions' Condell Park premises and recruited some of its staff, including Edwards.

[LinkedIn: Should the industry stop operating on credit?]

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