GLENZEIL’S unsecured creditors look as though they will receive at least some payout from the company’s $10 million collapse, but there is no indication how much.
And despite company directors Ken Skrinis and Brian Gabriel lodging claims of $69,000 and $80,000 respectively in unpaid salaries, liquidator Peter Dinoris, of Vincents Chartered Accountants, told creditors this morning that their claims would be capped at just $2500 for wages and $1500 for holiday pay.
“It’s up to them whether they are willing (to forgo their claim) to give creditors more,” Dinoris says.
The same limits apply to immediate family members of the directors who are among the 34 staff owed $1.2 million in wages following the collapse Glenzeil, a 20-year-old business that was among the Gold Coast’s largest contract builders.
The creditors’ meeting, held at Bundall, was a subdued affair as Dinoris detailed further details of the company’s finances following his appointment as voluntary liquidator on September 8.
Glenzeil directors Skrinis and Gabriel weren’t present at the meeting, but monitored proceedings through a phone link-up. Neither addressed the meeting.
At the time of liquidation, Glenzeil was involved in 23 projects with the largest being the Pikos Group’s Pure project at Kirra and David Devine’s Plaza project in Brisbane.
Dinoris says Glenzeil struck financial difficulty due to a failure to secure sufficient new work to meet its expenses.
In the report to creditors, Dinoris says Glenzeil’s directors offered up a broad range of reasons for the collapse – including low margins, inclement weather, unrealised projects, liquidated damages imposed by clients, legal issues with body corporates, delays and faults and an inability to fund additional construction costs.
Dinoris says unsecured creditors are owed a total of $10 million, plus potential damages, while Glenzeil has total liabilities of at least $10.7 million and as much as $13.3 million.
He says Glenzeil also has $3.4 million owed to it by debtors, although not all will be recovered to bolster creditor returns.
Dinoris says $846,000 is owed from the Pure project at Kirra and $886,000 owed by the Plaza project in Brisbane. He says these funds are not expected to be recovered.
At the time of liquidation, Glenzeil had $1.36 million in general cash and $2.47 million in term deposits held by the National Australia Bank.
NAB is the main secured creditor and, along with other secured creditors, is expected to be repaid in full from the available funds.
Dinoris says the $1.36 million was released to assist in the liquidation process, with the liquidator hopeful there will be surplus funds from this for distribution to creditors.
Plant and equipment also is to be sold, but no valuation has been given as an auction is to be held shortly.
Glenzeil has two properties, one at Burleigh Heads and another at Ballina, with a combined value of $1 million.
“Caveats have been lodged over these and they will be put up for sale by auction in due course,” Dinoris says.
The liquidator, who was granted approval at the meeting to cap his fee at $240,000, says he is hopeful of delivering a return to unsecured creditors, but he is not sure yet what level of payout they should expect.
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