China debt risk pledge

CHINA has rejected “misunderstandings” fuelling concerns about its Belt and Road global infrastructure program but vowed to tame debt risks as it opened a summit on its signature foreign policy.

President Xi Jinping’s pet project is a reboot of the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects.

The initiative promises to bring much-needed modern infrastructure to developing countries, but the US has dubbed it a “vanity project” and critics warn it is a “debt trap” favouring Chinese companies.

Huang Kunming, a member of China’s powerful Politburo, said there have been “some misunderstandings and unfounded rumours” about BRI but Finance Minister Liu Kun said China would release a framework to “prevent debt risks”. A GOLD Coast bakery that crumpled has left behind debts of more than $5 million to employees and creditors and stock, including frozen pies, croissants and doughnuts, worth nearly $50,000.

Australian Artisan Bakery Pty Ltd, which traded as KCs Bakery in Molendinar, also had pie and sausage roll making machinery worth $1.039 million at the time directors Mark Gabites and Daniel Pardy decided to wind up the failing company.

The pair opted for a creditors’ voluntary liquidation – which is where a company cannot pay its creditors in full and is insolvent – on March 25.

KCs Bakery has been making meat pies, sausage rolls and cakes on the Coast since 1995.

The business was taken over by Australian Artisan Bakery in 2017 and ran into cashflow problems 18 months later.

A report by Michael Dullaway and Mark Davidson, of Bundall-based Pearce & Heers Insolvency Accountants, has revealed the full extent of the company’s financial affairs.

It lists close to $800,000 owed to 123 employees, who are priority creditors, including $202,641 in wages and $269,470.88 in superannuation. Mr Pardy and Mr Gabites are both owed $598.50 in superannuation contributions, according to the report.

They are also major creditors of the company, owed $145,128 and $122,264, out of a total of $4.503 million due to 78 companies.

The other major creditors comprise the Australian Taxation Office ($885,013), Scottish Pacific ($166,197), Commonwealth Bank ($1.554 million), Colliers ($190,683) and Demos A & Mikael ($457,500).

Australian Artisan Bakery is itself owed a substantial slice of money from 207 entities, including schools, clubs and bakeries across the Gold Coast and Brisbane.

The biggest outstanding amounts come from 7-Eleven ($37,436), Coles ($30,668), Metcash ($35,649), Spar Australia Ltd ($21,390) and Superior Food Service ($85,400).

The company had a large amount of stock in the freezer at the time of the closure.

Products included 15 boxes

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