All companies in the Penrice Group have been placed into liquidation following a creditors’ vote, paving the way for former employees to lodge claims for unpaid entitlements.
Penrice went into administration on April 11 this year with an estimated $200 million in debt, and was placed in liquidation after the vote at a creditors’ meeting in Adelaide yesterday.
Administrators McGrathNicol also confirmed that the sale of Penrice’s Angaston limestone quarry to Adelaide Brighton was successfully completed this week. It did not disclose the sale price, but InDaily understands the sale figure was around $20 million.
McGrathNicol partner Sam Davies said liquidation was the best option available to creditors.
“Importantly, employees made redundant and owed money can now commence the process of claiming entitlements owed,” he said in a statement.
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“As liquidators, we will continue our investigations into the circumstances behind the Penrice Group’s collapse, with a view to identifying possible grounds for legal proceedings on behalf of creditors.”
Employees can lodge claims for owed leave and other entitlements through the Fair Entitlements Guarantee Scheme administered by the commonwealth Department of Employment.
A report to creditors by McGrathNicol shows 180 employees will have to apply for government assistance, as Penrice is unable to meet $4.5 million in wages, leave entitlements and redundancy payments.
It also estimates unsecured creditors will get nothing and that two major banks – National Australia Bank (NAB) and Westpac (WBC) – will be left with a significant shortfall from their $111.5 million loans to the group.
