Debt-strapped Greensill should be liquidated, Grant Thornton says
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Insolvent supply-chain finance firm Greensill’s Australian operation is lumbering under as much as $4.9 billion of debt and should be liquidated, its administrator Grant Thornton will tell creditors at a meeting next Thursday.
The company has just $4 million in the bank and its remaining four staff are operating out of a WeWork office, after the other 33 employees were let go when US private-equity giant Apollo Global Management last month pulled out of a plan to buy Greensill.
Lex Greensill’s Australian company has as much as $4.9 billion of debt.
Peter Braig
Claims war to heat up after Greensill Bank assets frozen
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Greensill Bankâs Australian and British assets have been frozen after the bankâs German administrators won legal approvals to stop them being sold off, intensifying the war over Greensillâs assets, including invoices owed by Sanjeev Guptaâs GFG Alliance.
The bank, which has been closed, is a direct subsidiary of Greensillâs Australian parent, which means that Australian creditors will not be able to claim on any of the bankâs assets, which included camp sites in Germany worth $US272,000 ($356,000) at the end of 2019.
Greensill Bankâs German administrators will take control of its assets.Â
Distressed businesses would collapse if the crossbench rejects the government’s reforms on casual entitlements, sparking another round of job losses, insolvency experts warn.
Mr Archer said the advice he d received was that the main reason for the company s financial difficulties was the COVID-19 restrictions, which had severely impacted the ability of the business to trade . Mr Chan s report on the company s affairs showed creditor claims totalling just more than $1.408 million. The debts were made up of $270,000 of priority employee entitlements, $200,000 owed to the Australian Taxation Office, $760,000 owed in loans and to funders and $178,883 owed to trade creditors and suppliers. Akane Teppanyaki and Whisky Bar opened in January, 2019, but was forced to close for good due to coronavirus restrictions. Mr Archer said there were eight staff owed entitlements, which would likely be paid by the Federal Government s Fair Entitlements Guarantee scheme.
Restaurant workers not paid tens of thousands as Red Spice Road reopens with new staff
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The reopening of a beloved Melbourne restaurant sounds like something to celebrate, so why isnât the resurrection of Red Spice Road an unmitigated good news story?
The hugely popular pan-Asian restaurant announced its permanent closure in early May 2020, a victim of the pandemic. In mid-January 2021, the restaurantâs founder and first head chef John McLeay posted on Facebook that the restaurant heâd left three years ago was to reopen as a restructured company.