Spotlight on director

Luxury digs revealed as Linix Group creditors chase $1.4m

A GOLD Coast businessman who worked on lighting the Southport Ferrari dealership has been referred to the corporate watchdog over a suite of allegations.

Paul Penrose’s Linix Group Australia collapsed in March owing $1.45 million to 42 creditors.

Linix Group, which traded as OMS Lighting Australia, was a commercial lighting business that worked on some of the Gold Coast’s most prestigious projects. According to the company’s website it helped light the Southport Ferrari dealership to showcase the quarter-of-a-million-dollar machines.

The company, which was founded in 1996, also worked on the Gold Coast Cultural Precinct.

In a report to creditors in July, GT Advisory liquidator Glenn O’Kearney revealed his investigations uncovered a number of allegedly questionable transactions.

Mr O’Kearney’s report alleges Mr Penrose made preferential payments totalling $256,897 to three creditors, took “excessive payments” from the company and racked up debts of $1.3m while trading insolvent.

“It is my initial view that the company was insolvent from on or around August 2017,” Mr O’Kearney’s report notes.

He confirmed the alleged breaches had been reported to ASIC, however declined to provide further details.

It is unknown yet what action, if any, ASIC will take regarding the referral.

Attempts to contact Mr Penrose (pictured) failed.

Property records reveal the sole director owns a three-storey, five-bedroom mansion on the banks of the Broadwater at Southport which he purchased in 2018 for $1.3m. In January, seven weeks prior to the company’s collapse, a 2016 Mercedes Benz C43 Coupe and a Mercedes GLC43 were traded in for $69,032 and $66,000.

Mr O’Kearney acknowledged investigations into Mr Penrose’s personal financial situation were continuing.

“My preliminary investigations into the director’s personal financial position indicates he may hold sufficient assets to satisfy an insolvent trading claim,” he noted.

Mr O’Kearney expects unsecured creditors will receive up to 11c in the dollar.