History of troubled Helpstreet company revealed
A COMPANY linked to Earle Haven contractor HelpStreet went bust last year after allegedly trading insolvent and leaving behind debts of more than $200,000.
But it was saved by a deal in which creditors accepted just one quarter of what they were owed.
HelpStreet Medical Pty Ltd, which counts Michael Lamont as sole director, was established in February 2014 to provide healthcare services from medical centres in Newcastle and Canberra.
It is one company within the HelpStreet Group, which also includes HelpStreet Villages (Qld) Pty Ltd - the company brought in by PeopleCare in April 2018 to operate Earle Haven Retirement Village.
HelpStreet is under scrutiny due to concerns over missing funds, medication and medical records that had allegedly been removed from the nursing home last week.
Administrators for HelpStreet Medical, Shumit Banerjee and Jason Porter, executed a deed of company arrangement in May last year with the support of creditors, which prevented the company falling into liquidation. The total amount to be paid under the deed was $212,616, including administrator fees. Mr Banerjee yesterday said the deed, under which creditors were offered 25¢ in the dollar, offered better returns than liquidation.
He said as a result of the agreement neither Mr Lamont nor Kristofer Bunker, the CEO of HelpStreet Global and a former director of HelpStreet Medical, were pursued for the recovery of the costs of allegedly trading insolvent.
Mr Banerjee said all repayment obligations had been met and the deed of company arrangement would be discharged during the next month.
Employees were paid out in full, he said.
Mr Bunker denied the company traded insolvent. "The company has never been closed down," he said. "It remains dormant."
Mr Lamont said HelpStreet Medical's troubles had no impact on the HelpStreet Group as it fell into administration prior to HelpStreet Villages obtaining the Earle Haven contract.
According to the administrators' report from May last year, during the 2017 financial year HelpStreet Medical changed its structure to include providing labour hire services to other companies within the HelpStreet Group.
The administrators said part of the company's problems stemmed from this restructure, but also included a host of other issues.
Mr Lamont called in the administrators on March 5 last year, by which time the company had been taken over by HelpStreet Healthcare, another company within the group.
HelpStreet Medical reported a slim profit of $73,434 for FY17. Revenue was $2.93 million. However, the cost of providing those services, including employee entitlements, was $1.82 million. Management fees clocked in at $586,489 paid to the parent company. For the nine months through to when the business entered administration, it reported a steep decline in labour hire revenue to just $625,713 and costs exceeding that figure at $637,699. For the same period HelpStreet Medical reported a loss of $367,972.