Good news for creditors of century-old manufacturer
CREDITORS of a century-old Ipswich manufacturing business which went into administration two years ago are set to receive what is owed to them in full.
Claypave Pty Ltd went into voluntary administration in March 2019 owing $4.9 million to the Commonwealth Bank and $70,000 to trade creditors.
It had accrued liabilities of $2 million in employee entitlements.
The business formally ceased trading in July last year.
It was originally called Rylance Collieries and Brickworks and began operation in the 1880s with its plant built in Ipswich in the 1930s.
Its last owners took over in 1985 and they sold clay bricks and pavers to clients nationally while also exporting products, predominantly to Japan.
Claypave also operated a retail sales outlet at Dinmore.
Worrells liquidator Adam Ward said the business’ major asset had now been sold after an extensive marketing campaign.
Sale of the business’ 67 hectares of land was settled on March 30 to an “undisclosed purchaser”.
“Unfortunately after seeking interest from assorted parties and the public, the Claypave business was unable to be sold as a going concern,” he said.
“I had to look to sell the assets, including plant and equipment, stock and land separately in order to maximise a potential return to creditors.
“I’m very pleased to say that I expect to report to creditors shortly that if future recoveries are as anticipated, full payment will be distributed in the coming months.
“(This sale will allow) for the secured creditor to be paid in full.
“The directors, suppliers, staff and regulators have continued to provide support during the trading and administration period.
“In particular the major secured creditor, the Commonwealth Bank of Australia, has been supportive of the process throughout.
“This support enabled recoveries to be maximised, which allowed employee creditors to be paid in full and the surplus will now flow to unsecured creditors.”
Mr Ward confirmed to the QT last year that all former employees, about 70, had been paid all of their priority entitlements.
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