The other options would be for the creditors to return the company to the directors’ control or for the directors to present a Deed of Company Arrangement to be able to continue trading, but neither of these was likely, according to Stirling Horne of Lawler Draper Dillon.
The second creditors’ meeting on 18 May is expected to be adjourned so the administrator has enough time to work through three “preferred” offers for Sands Print, said Horne.
Horne also said he was confident employees would receive all their entitlements through the combination of realisable assets and the Federal government’s General Employee Entitlements and Redundancy Scheme (GEERS).
At the first creditors’ meeting on 17 April, Horne said he would investigate whether any insolvent trading had occurred and announce his findings on 18 May.
The preliminary report revealed Sands Print had gone into administration on 4 April with around $4.5 million of assets and $6 million of debt – $3 million of which was unsecured.
Unsecured creditors include the Australian Taxation Office ($413,000), BJ Ball ($170,000), KW Doggett Fine Paper ($141,000), Spicers Paper ($128,000) and Direct Paper Supplies ($100,000).
There were also debts of $1.5 million to Bernice Stub and Ann Lewin, who are believed to be the partners of directors Mannie Stub and Ernest Lewin. Secured creditor NAB was also owed up to $2 million.
Sands Prints’ assets included $2.3 million owed by debtors, $1.2 million in plant and equipment, $944,000 of stock and $35,000 cash.
Australian Manufacturing Workers Union organiser Harriet Stewart told ProPrint that while she was confident the employees would receive all their entitlements, they were still in a difficult position.
She said GEERS payments usually took three to six months to arrive, which could cause stress for people with mortgages.
Stewart said the workers were “anxious and upset” about Sands’ predicament and worried about their job security.
The AMWU is representing 24 of the company’s 80 employees, according to Stewart.
Sands Print managing director Mannie Stub did not return ProPrint’s calls or emails.
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