The last-ditch attempt to salvage the Starleaton shipwreck, via a Deed of Company Arrangement (DOCA), issued in March 2024 by Simon Cathro and Andrew Blundell from Cathro & Partners, has unfortunately failed, leaving a trail of catastrophic consequences for former employees and unsecured creditors.
Starleaton has been placed into liquidation after failing to meet the monthly repayments set out in its Deed of Company Arrangement (DOCA). Creditors were notified late Tuesday afternoon in a formal update issued by administrators Simon Cathro and Andrew Blundell of Cathro & Partners.
Ben Eaton failed to deliver on DOCA payment termsUnder the terms of the DOCA, the company was required to make 24 equal payments of $33,333.33 into a Deed Fund by the end of each month. However, according to the administrators, Starleaton defaulted on these obligations. The last payment made was in Feb 2025 making a total of $366,666.30 paid of the $800,000 that was scheduled.
“The Companies defaulted on this obligation and failed to make payment of monthly instalments as and when they fell due,” the statement read. A formal notice of default was issued, but no payment was made, prompting the termination of the arrangement.
As a result, the administrators advised that on 11 June 2025:
- The DOCA was terminated due to the breach, which was not considered capable of being remedied within a reasonable timeframe;
- The company was placed into liquidation; and
- The administrators were appointed joint and several liquidators.
The liquidators will now begin investigating the company’s affairs, including any potential avenues for recovery. A report outlining their findings and the likelihood of a dividend for creditors is expected by 11 September 2025.
With the liquidation now underway, the company will cease trading shortly, and all remaining employees will be terminated.
In line with section 556 of the Corporations Act, employee entitlements will take priority over other unsecured debts, and may even supersede certain secured creditors where circulating assets are involved. Staff may also be eligible for assistance under the federal government’s Fair Entitlements Guarantee (FEG) scheme if company assets are insufficient to cover amounts owed.
Cathro & Partners advised all affected staff to lodge claims through the FEG scheme. Details of individual entitlements will be sent to employees in due course.
Employee Fair Entitlements Guarantee (FEG) Claim Form
See also previous WFO article on the Starleaton saga here
