Newsagents have lost out from the unexpected collapse a few weeks ago of Sing Tao Newspapers Pty Ltd. Despite this, the liquidator is pursuing newsagents for what could be dubious amounts. Further, they are being heavy handed in their approach.
Newsagents were supplied newspapers by the company. Newsagents paid for newspapers. Then, later in the cycle, they claimed for unsold product. Who knows what the actual debt is given the surprise collapse of the company. Timing is key in determining an accurate position.
The liquidator is threatening legal action to recover what they claim is a few hundred dollars owed in one instance shown to me. I doubt a liquidator would take legal action to recover this. However, I am no expert and offer no advice.
If I received such a notice, I’d show the liquidator an invoice for my costs from the collapse covering any uncredited returns.
A very disturbing story. Yes, a liqidator may send out a standard letter calling oustanding accounts to be piad immediately or within a required period of time or else legal action would be taken.
If I were a reciever of such notice I would immediately contact the writer and either make arrangement or pay immediately (if it was appropriate) and if if not I would explain whereour business was at and put the conversation in writing back to the Liquidator your last paragraph about “cost from the collapse” is not clear however if you mean the non credit of claimed returns i would along with what you state deduct the unclaimed amount if there was ablance owing and if not do exactly what you say. Best of luck however in getting any payment but one needs to record the situtation at the time of closure.
It’s a long time since I’ve been involved in this sort of action, but wouldn’t a creditor claim against the liquidated business for monies owed to you ?
That’s not to say you would get it, but it does put your claim in the system against whatever they claim from you.
Notes and ALL details of ALL conversations in writing in ALL cases like this.
Let’s hope all involved come out smiling, but yep, I doubt that will happen…… 🙁
Lance, yes this is still the case and you have supported what I said wheteher one gets paid or not comes down to secured creditors first and that is at the point of appointment, then the next in line which could be the newsagent in this case unless there is a preferred agreement with other parties that puts us last and then only if there is enough money left over aftyer their fees to pay unsecured
Like yourself I hope all come out okay and by the looks of it not likely