MASS CLEARANCE: Millions of dollars worth of Ostwald Bros equipment was sold off last week.
MASS CLEARANCE: Millions of dollars worth of Ostwald Bros equipment was sold off last week. Michael Doyle

Auction cuts debt while Ostwald Brothers restart entity

THE OSTWALD brothers have re-established one entity of their fallen business, in the same week a mass auction sold off their trucks and equipment.

Millions of dollars worth of equipment was sold over the two-day auction last Thursdayand Friday, with buyers across the country converging in Dalby for the sale.

While this was taking place, it was announced Brendan, Matthew and Daniel Ostwald officially completed a deed of company arrangement earlier this year, with an unnamed financial backer helping them to create a new business out of Ostwald Construction Materials.

The Ostwalds will have "substantially less than 100 per cent" control over the Toowoomba-based company, which is listed as Surat Basin Construction Materials in the deed of company arrangement.

A spokeswoman for liquidator PricewaterhouseCoopers said the claims from OCM's creditors had now been "released and extinguished".

Documents revealed the creditors will now be placed into a trust. Trustees expect to declare a dividend in May.

Last week's auction drew large crowds in search for a deal, with a wide-range of equipment on offer.

More than $1 million was traded on the Thursday, and that mark had been well and truly exceeded before lunch on the Friday.

Administrator Derrick Vickers, from PricewaterhouseCoopers, said his company was now in the process of distributing the proceeds to creditors.

"All proceeds after costs will go to reducing debt in the companies, all of which have their own respective creditors and costs," Mr Vickers said.

"Initial feedback is the auction went very well.

"We are waiting on the final accounting from the auctioneer and will update creditors on the amount raised once proceeds and costs have been allocated appropriately by the auctioneer and audited by PwC."

Ostwald Bros. debt was roughly $60 million in September last year.