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17-310MR ASIC winds up 11 abandoned companies owing more than $650,000 in employee entitlements

Tuesday 12 September 2017
ASIC Media Release

During the period March to August 2017, ASIC assisted employees gain access to the Fair Entitlements Guarantee scheme (FEG) by exercising its wind-up powers and appointing liquidators to 11 abandoned companies.

The appointment of liquidators also facilitates a full and proper investigation into the reasons why the companies failed and allows recovery of any voidable or unreasonable director-related transactions.

The 11 abandoned companies owe at least 29 employees in excess of $650,000 in employee entitlements. The companies are:


Company Liquidator and Firm State
The Promolounge Pty Ltd Robert Woods of Deloitte VIC
Refined Project Management Pty Ltd Michael Carrafa of SV Partners VIC
Duramic Pty Ltd Hugh Armenis of Bentleys Corporate Recovery NSW
Commercial Monitors Australia Pty Ltd Shane Cremin of Rodgers Reidy VIC
Coes Company Australia Pty Ltd Anne Meagher of SV Partners QLD
Casselson Pty Ltd Ross Blakeley of FTI VIC
EPS Worldwide Au Pty Ltd Tracy Knight of Bentleys Corporate Recovery QLD
51Pay Pty Ltd Timothy Norman of Deloitte VIC
Superior Exhaust Pty Ltd Gary Fettes of Rodgers Reidy VIC
Bread Alone NQ Pty Ltd Derrick Vickers of PwC QLD
TLT Constructions Pty Ltd Leigh Prior of Pitcher Partners SA


Background

The FEG is a legislative safety net scheme funded by the Commonwealth Government. It is designed to assist employees recover owed unpaid employee entitlements because of their employer company’s liquidation or bankruptcy. In addition, the Department of Employment operates the 'Fair Entitlements Guarantee Recovery Programme'; a programme designed to strengthen recovery activity of amounts advanced under the FEG Scheme. More information about it is available here.

Some employees owed entitlements cannot access FEG because the companies’ directors are either unable to discharge their duties or abandoned their insolvent companies without putting them into liquidation. ASIC’s appointment of liquidators facilitates access to FEG for these employees. ASIC first used its powers in 2013 (refer: 
13-233MR) and to date has wound up 95 companies that owed at least 287 employees more than $5 million in entitlements.