Genuine Print Pty Ltd, a suburban printer in Oakleigh, Melbourne, will appear in the Victorian Supreme Court (audio/videolink) on March 16th for a hearing concerning a winding-up application lodged on behalf of the Waratah Group liquidators, by city law firm Dimos Lawyers. Wideformat Online spoke to Genuine Print owner Genine Thornton.
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| Oakleigh, Vic printer Genuine Print employs around five people. |
"We owe them nothing," says Genuine Print Pty Ltd owner Genine Thornton, "It is possible Waratah actually owe us money because we traded on a contra basis. I was away for two months taking care of a sick family member so may have been slow to follow-up."
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| Genine Thornton, owner, Genuine Print |
We reported on aspects of the Waratah liquidation HERE. Inappropriate invoicing has also been claimed by Australia Post, St Vincents Hospital, Spotlight Group and World Vision, with payments disputed to liquidator Shane Deane of Dye & Company Pty Ltd.
The pursuit of a small 'soft target' to recover disputed debts tends to have an air of unfairness, even bullying about it. It would also appear to be ill-advised since, according to Genine Thornton, her company is solvent. Winding-up orders can not be enforced against a solvent company - it becomes a disputed debt and payment is normally requested by a Statutory Demand. If a Statutory Demand is ignored or not set aside for more than 21 days, a 'presumption of insolvency' can be made but if solvency is subsequently proved, it can revert to normal debt collection protocols.
Victorian Bar Member Sam Chizik of Svenson Barristers has written: "At the hearing of the winding up application, the Court has a wide discretion to make any order it thinks fit, including the power to adjourn or stay the winding up application so as to enable any dispute about the debt to be determined in separate proceedings. It can also dismiss the application, even if presumed insolvency has been proved. The outcome of the hearing depends principally on the solvency of the company."
Waratah Group (in Liquidation) owes large sums to many other printers, the ATO, staff, utilities etc. The total indebtedness is over $22 million - one of the largest Australian print industry insolvencies ever. Even Geon's unsecured creditors amounted to
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| Liquidator Shane Deane |
$16 million, plus around $20 million in employee entitlements which were mainly covered under FEGS. The appalling management of Warath Group finances has already resulted in the demise of other smaller businesses owed unrecoverable money. Liquidator Shane Deane is on record as saying that unsecured creditors are "unlikely to see any return." Liquidators are obliged to try and recover as much as they can from debtors of failed companies - so creditors can receive some cents in the dollar but, if no returns are at all likely by Deane's own admission - why bother? And what about the disputed and potentially spurious invoices?
Now they are attempting to wind up a small suburban print shop who claim nothing is owed and whose owner is also active in charitable works helping Melbourne's homeless. While this may be a legal right, the circumstances indicate that closer inspection might be called for.
The winding up application, hearing date and contacts can be seen HERE
Dimos Lawyers have been contacted for comment.
