Director sells property to pay creditors after insolvency
CREDITORS will be paid the money they are owed by a former Bundaberg business after the company's director sold a property to pay the debts in full.
Previously known as All Safe Bundaberg, Brodrick Enterprises used to supply and install solar power systems, solar and electric hot water systems, insulation, skylights and ventilation products to customers throughout the region.
The solar business went into liquidation and stopped trading on April 12, 2017 after a period of trading losses.
The following day, Morgan Lane of Worrells Solvency and Forensic Accountants was appointed as liquidator.
Mr Lane told the NewsMail early investigations found inadequate cash flow was one of the main reasons behind the company's insolvency.
According to the company's director, Brodrick Enterpises suffered due to economic downturn, which resulted in a lack of enough capital to conduct business and pay creditors.
"The company appeared to have begun making losses from December 2015," Mr Lane said.
Upon his appointment, Mr Lane collected the company's plant, equipment and outstanding debtors.
After Brodrick Enterprises' secured assets (collateral) were collected, $105,830 in funds were realised.
$49,193 came from the sale of fixed assets.
The remaining $56,637 came from debtors.
"To date we have received creditor claims totalling $277,061, though total debts are likely to be higher," Mr Lane told the NewsMail.
He said a dividend that prioritised employee entitlements and superannuation had been declared on May 28.
"We expect this to be a 100 per cent dividend," Mr Lane said.
Once the dividend has been paid, the remaining funds will be paid to a further, secured creditor.
The creditor (formerly Bank of Queensland) was subrogated to Brodrick Enterprises' director after he paid out the company's debts in full from the sale of a property.
Creditors will benefit from a 100 per cent dividend on June 26.