Ostwald brothers gain control, liquidation for related firm
ADMINISTRATORS PriceWarehouseCoopers have confirmed that creditors of the Ostwald Bros Civil arm of the company voted to place it into liquidation at a meeting in Brisbane this afternoon.
"There are no employees under Ostwald Bros Civil Pty Ltd so the impact is limited to secured and unsecured creditors for this entity," Mr Vickers said.
"Now that the company is in liquidation we will continue our investigations in conjunction with Ostwald Bros Pty Ltd and report to creditors on potential returns in due course."
UPDATE 12PM: THE administrators of embattled Ostwald Construction Materials has confirmed today that Ostwald brothers Brendan, Daniel and Matthew will regain control over the company.
After a second creditors meeting this morning, administrator Derrick Vickers of PriceWaterhouseCoopers revealed that creditors had accepted a Deed of Company Arrangement (DOCA) submitted by the three brothers and a "silent investor".
The contract was worth $2.15 million.
"We believe that this is the best outcome for creditors and the remaining employees of Ostwald Construction Materials," Mr Vickers said.
"This means that the company can continue to trade including its contracts under the DOCA. Creditors will be paid out of the Creditors Trust in due course pursuant to the terms of the DOCA."
The 15 creditors in attendance at today's meeting, however, voted down a report which detailed the estimated return to creditors under a liquidation scenario.
The deed is expected to be implemented within 21 days, granting the brothers, the silent investor and the board control over the company.
Ostwald Construction Materials is a different entity to the Ostwald Bros Group.
Another creditors meeting will be held for the Ostwald Bros Civil arm of the company at 3pm today in Brisbane.
Creditors yesterday voted to liquidate Ostwald Bros Civil, with Mr Vickers stating that employees and contractors would receive nothing until the company officially ceased trading in 2018.
More to come.
EARLIER: UP TO 150 Ostwald Bros workers across the Darling Downs and Queensland have lost their jobs after creditors for the struggling civil construction firm voted to liquidate it.
Administrator from PricewaterhouseCoopers Derrick Vickers said employees and contractors would receive nothing until the company officially ceased trading in 2018.
Mr Vickers said in a statement that all employees would see out the remaining nine contracts, which will all finish early next year.
"This means we will be able to provide employment for these people up to and through the holiday period," he said.
"Given our trading relationship with principal contractors during the administration period we're confident we can continue these contracts in an orderly manner thus preserving contract value."
PwC was heavily criticised for a lack of transparency before the meeting by members of the creditors committee, which is made up of 10 different entities and businesses including the Australian Tax Office.
Subcontractor Vicky Riddick slammed the administrator for a perceived lack of consultation with creditors.
"I don't think the administrator has done enough for us," she said.
"I think (we needed) more consultation with the people who are affected - there's not enough information going out.
"People that we've been talking have had no idea of what was going on, other than what we were telling them."
A vote to remove PwC as liquidators by several members of the creditors committee was defeated at the meeting.
Ostwald Bros' directors put the company into voluntary administration in August after they were handed a $4.2 million debt bill from the ATO.
Mr Vickers suggested the company could have been trading while insolvent for much of the past financial year, in the report to creditors released last week.
WORKERS WILL HAVE TO APPLY FOR ENTITLEMENTS
CORY Cooper always knew he wasn't going to see much of the nearly $20,000 he was owed by Ostwald Bros.
The Dalby man was one of hundreds of workers to find out administrators would not offer payment yet for outstanding pay or entitlements.
Now working for Wagners after sensing the impending chaos of Ostwald Bros months ago, Mr Cooper said several of his former co-workers were in worse situations.
"My entitlements are nothing compared to some - the largest I've heard is $38,000, and that's just one employee," he said.
"I'm owed not quite $20,000, which is outstanding pay and entitlements."
"I'm not confident of getting it back."
Mr Cooper was part of more than 260 workers who were sacked in early September.
Workers already sacked won't know how much money they'll receive until the company ceases trading next year.
All employees will need to apply through the Federal Government's Fair Entitlements Guarantee scheme for access to outstanding amounts.
Mr Cooper said the final few months of his employment were a nightmare.
"There was tension - it was horrible to work there. It used to be a great place to work," he said.