03/04/2020
BLACKWOOD FITNESS UPDATE 3
The Statutory Report by Liquidator 3 April 2020 report is here:
https://tkais.com.au/active-matters/
(select Forward Half and use code FORLIQ)
LOTS of unanswered questions about possibly questionable transactions including:
- 2 cars worth $250,000 sold by company before liquidation, but never paid for (pg 1)
- "payments to related entities in the total amount of $660,000 that have the characteristics of unreasonable director-related transactions" (pg 3)
-"payments to 7 creditors in the ammount of $229,000 that have the characteristics of unfair preference payments" (pg 3)
The auction raised $151,000 - but only $25,595 was sent to the liquidator. It looks like the the landlord is owed $84,955 in unpaid rent (pg 2 and 8)
I feel for the employees - 23 are owed a total of $141,471
Pavlis claims his wife Maria is owed $610,000 (pg 10) and his father Christos is owed $910,000 ; or $1.52M out of the total unsecured creditor pool of $1.9M. Good luck with that John.
Perhaps if the missing 2 cars and the unexplained $660,000 in "director-related transactions" could be recovered the picture would look better for creditors. I'll wait for the call.
From here the liquidator intends to:
- keep investigating the missing 2 cars ($250K) (pg 2)
- "review of director's potential [personal] liability for insolvent trading" (pg 3)
- "recovery of unfair preference payments" ($229K) (pg 3)
Any dividend will rely upon these 3 things and the "unreasonable director-related transactions" ($660K)
A meeting of creditors is possible. If enough creditors call for it, the liquidator will hold a meeting.
We have also placed this report and other relevant public documents at this link :
http://bit.ly/Blackwood-Fitness-Creditors (Dropbox link)