When : Monday 9th July 2012
Where : Supreme Court, Sydney. Justice P Brereton
Applicant of Winding Of Winding Up Order against Reed : SCE Group (owed $265,000.00 approx’)
What Does This Mean For You as an Unsecured Creditor (Subcontractors) ? :
- You have lost the opportunity to vote on a Deed Of Company Arrangement (DOCA) that may have assisted in the recovery of some of the monies you are owed.
- Your two options are :
- You can contact the Provisional Liquidator to request that Reed be put back into Administration to enable you to be able to vote on the DOCA. His name is Mark Robinson and his email address is mrobinson@ppbadvisory.com and Marks phone number is 0419 217 732.
- If you choose the DOCA option it will be imperative to ensure the DOCA has provisions in it to maximise a return to unsecured creditors. RECOUP Contractor Debt Recovery will be working to this end.
- You can contact the Provisional Liquidator to request that Reed stay in Liquidation but that he goes through the whole Reed Corporate Structure like a “dose of the proverbial salts” to unravel the myriad of inter-company transfers to find the missing $100m. His name is Mark Robinson and his email address is mrobinson@ppbadvisory.com and Marks phone number is 0419 217 732.
- Geoff Reed / Other Reed owned companies were to contribute $11 million to the DOCA – this goes now that Reed Constructions is in Liquidation.
All this on the same day Ferrier Hodgson revealed :
- There is a case to answer by Reed Directors for “Insolvent Trading” to an estimated value of $10 million.
- The Reed parent company owes Reed Constructions Australia Pty Ltd $100 million
- The Reed parent company is also hopelessly insolvent.
- Ferrier Hodgson couldn’t explain where the $100 million has gone !!
- Geoff Reed has only one asset to speak of, a highly mortgaged home and he would be worth about $300K if push came to shove and anyone pursued him personally.
- The Reed families wealth is tucked away in a “Discretionary Trust” (Geoff Reed and other family members are the beneficiaries of this trust).
Where to from here :
- Claims direct against Roads & Maritime Services for work completed after 31 January 2012 are more important than ever.
- BER Subcontractors should note that Ferrier Hodgson estimated the Reed Claim against DEC should yield approximately $28 million – Every BER Subcontractor should bombard Barry O’Farrell with emails, faxes and phone calls asking for him to finalise the Expert Determination Process and pay this money : http://www.premier.nsw.gov.au/
- Likewise, RMS Subcontractors should note that Ferrier Hodgson estimated the Reed Claim against RMS should yield approximately $19 million – Every RMS Subcontractor should bombard Barry O’Farrell with emails, faxes and phone calls asking for him to finalise the Expert Determination Process and pay this money : http://www.premier.nsw.gov.au/
The Biggest Questions To Be Answered : HOW COULD ROADS & MARITIME SERVICES GET IT SO WRONG ? WHY DID THEY EVER GIVE REED Constructions FOUR MAJOR CIVIL WORKS PROJECTS IN THE FIRST PLACE ?
For Assistance call RECOUP on 1300 732 687
Yours faithfully
RECOUP Contractor Debt Recovery
Australia’s foremost Security Of Payments Act specialists.
