QLD Liquidator ignoring Secured Creditors

Discussion in 'Debt and Bankruptcy Law Forum' started by Jason Rivers, 3 May 2019.

  1. Jason Rivers

    Jason Rivers Well-Known Member

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    Hey everyone,

    Well it’s pretty much as the title says. “Liquidator ignoring secured creditors”, that’s myself and every other employee.

    So the company I worked for went into liquidation in February 2018 and we all went through FEG for our entitlements which were paid in November last year. We were advised by FEG that we need to make a claim with the liquidator for the remaining amount of entitlements, which we did.

    We have since tried contacting the liquidation company via mail, email, voicemails and with messages left with the receptionist and to this date we have not heard anything back. So my questions are;

    1) Is there a letter of demand for information template we can send?

    2) Would it be better to go directly to s lawyer to get information?

    Thanks in advance
     
  2. Rob Legat - SBPL

    LawTap Verified

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    You will need to lodge a proof of debt with the liquidator, in an approved form. The liquidator should be able to provide the form (but I accept your comments about being unable to contact them), or you can access a template I found via Google here: https://insolvencyresources.com.au/StatFormsCorp/Formfivethreesix.rtf (please note I haven't checked the form for accuracy).

    You should also note that you're not a 'secured' creditor. As an employee you're a 'priority' creditor - you rank after secured creditors but before other unsecured creditors. There is also a hierarchy of priority for payments to employees:

    - Outstanding wages and superannuation; then
    - Outstanding leave of absence; and then
    - Retrenchment pay.

    Also note that there are exceptions to the process, such as for directors and spouses/relatives of directors.
     
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  3. Jason Rivers

    Jason Rivers Well-Known Member

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    Hey Rob thanks for the reply! Apologies for my late reply! I forgot to mention that we have already done that, the proof of debt that is. We still haven’t been able to get in contact with the liquidator handling the matter. We have also been advised that as the company is in liquidation we won’t be getting superannuation.
     
  4. SnowmanROK

    SnowmanROK Member

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    Noting the liquidation was February 2018, it has already ran for a year. The liquidator must report to creditors (including priority creditors) within a month of the year, so you should have received a report in March.
    If you did not, you should be able to call up and ask for a copy to be sent, download from the liquidator's website or from ASIC company records.
    The report will give an indication as to whether any funds will be available to priority creditors - as pointed out above, priority creditors rank behind secured creditors BUT ONLY in respect of non-circulating assets, not circulating assets (i.e. any cash, debtor receipts, WIP, stock etc.). You do, however, rank behind the costs of the liquidation - and also alongside FEG.
    If you don't get the reply you want - write to the liquidator by recorded mail formally requesting it. If you still don't get a reply, get in touch with ASIC for assistance in getting a response.
     
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