Around 200 Kleenmaid creditors attended the first meeting of creditors in Brisbane yesterday convened by administrators, Deloitte Partners John Greig, Richard Hughes and David Lombe.
The administrators made it clear to all customers at the meeting that there was no prospect of them receiving any goods that they have paid for. However, they should still register their claim as unsecured creditors of Kleenmaid, so they can be kept fully informed about the progress of the administration and will be able to exercise their other rights as creditors.
“The meeting gave all creditors an opportunity to get a better understanding of their situation and raise any questions or concerns they had with the administration process,” said Greig.
“Not surprisingly the main issue raised by creditors at the meeting related to stock and the frustration of those who still hoped to receive the goods they had paid for.
“We also outlined the asset and liability position of the Kleenmaid Group from the investigations undertaken to date. It was made clear to all creditors that there is likely to be a significant shortfall between the realisable value of the Kleenmaid assets and the amount creditors are owed.
“Unfortunately at this stage we do not foresee that the available assets of the Kleenmaid Group will provide any return to unsecured creditors including customers. This will create significant distress and hardship for these customers as was evident at the meeting,” he said.
Based on initial figures (subject to change) approximately $76 million is owed to creditors of the Kleenmaid Group.
The breakdown is as follows:
Secured creditors (banks) – $28 million
4,000 customer deposits – $27 million
2,800 trade creditors and suppliers – $16 million
Landlords and warehouse operators – $2 million
Employees – $3 million
Greig plans to provide their full findings in a report to creditors, which will be sent to all known creditors prior to the second creditors meeting to be held in May 2009.