Bistro 3 owes $2.5 million
Creditors unlikely to see a cent
BISTRO 3 went bust owing a whopping $2.5 million - the vast majority to unsecured creditors including suppliers who are unlikely to ever see a cent of it.
Money owed includes $185,386 to secured creditors such as banks and $184,872 for priority unsecured creditors including unpaid superannuation, while unsecured creditors including suppliers and the ATO are owed a staggering $2,253,141.
This figure is expected to increase once all creditors make a claim.
Liquidators have referred director Henry Preston to the Australian Securities and Investments Commission for alleged insolvent trading.
The restaurant officially closed its doors on May 20 when Preston put the company into voluntary administration and in the hands of administrators Hall Chadwick, which is now the liquidator.
In the administrator’s report to creditors, it was revealed the company had been trading at a loss and had not paid compulsory superannuation for the past two financial years and owed a significant amount to the Australian Tax Office, which moved to reclaim its debt.
Bistro 3 has a tax debt of $143,802.16 and the ATO began the recovery process by issuing a director’s penalty notice, which holds Mr Preston personally liable for the amount owed.
The notice allowed Mr Preston 21 days to pay the money in full or go into voluntary administration or liquidation, which is what he elected to do.
The Melbourne-based, Ferrari-driving high flyer claims to have no assets or money to pay back his debts.
Liquidator David Ross said they are still investigating the insolvent trading.
“We’ve reported to ASIC (Australian Securities and Investments Commission) and it’s still proceeding,” he said.
“We’ve conducted our own investigations and we will issue demands for insolvent trading and are not aware of any defences of the director.
“As indicated in the report the director believes he does have defences and any action would be defended against insolvent trading and any action would likely require funding from creditors.”
The report suggests that all creditors, secured or unsecured, will not receive any money owed to them in the liquidation of the company.
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