Ostwald meeting at Empire

MUM and dad business owners affected by the financial fallout of Ostwald Bros will have a chance to control who will handle the reimbursement of millions of dollars in unpaid work.

Subcontractors to Ostwald’s various contracts in Queensland and NSW will be able to vote on a possible new liquidator after the main secured creditor ANZ stated it would abstain from voting on all resolutions at the creditor’s meeting at the Empire Theatre today from 2pm.

In a leaked letter, the bank cited its decision was the “result of the disputes with various creditors and the administrator (Price Waterhouse Coopers) as to the way forward”.

It recognised there “may be risks and challenges in transferring responsibilities to replacement administrator/liquidator”.

In a statement, the creditors committee said it “greatly appreciate the support of ANZ and that they have done the right thing to ensure the voices of the unsecured creditors are heard”.

The committee remained hopeful that the other large creditor, ATO would follow suit.

“(We) hope that the ATO will do the same. Many unsecured creditors are in full support of appointing a new liquidator,” the committee said.

PwC confirmed it was aware of a push to kick it off the case.