Bruck ex- directors to court

Companies ordered to produce documents for public examination
WEB_Bruck-1-wk42 Oct12 2015_pe_c7_20151015
STILL A LANDMARK: Part of the factory that has been at the heart of Wangaratta’s textiles industry since the late 1940s.

THE former directors of a Wangaratta textile company have been summonsed by liquidators to appear at a public examination in the Federal Court in Sydney later this month.

Philip Bart and Geoffrey Parker – who controlled Bruck Textile Technologies – have been called to attend the court from October 26.

Fifty-eight workers lost their jobs when the company went into liquidation in July last year.

Liquidators Barry Taylor and Andrew Needham, from Sydney business recovery and insolvency firm HLB Mann Judd, had to rely on the taxpayer-funded Fair Entitlements Guarantee for $3.5 million to fund the company’s accrued wage obligations to the workers.

The former employees are still owed $373,000.

Other senior officers and executives of related companies are also among those summonsed for what is expected to be an examination across six days running into March next year.

The Federal Court three weeks ago ordered Mr Bart and Mr Parker and numerous inter-related companies associated with one or both of them to produce by next Wednesday a raft of financial documents and correspondence from the beginning of 2012.

The pair also has to produce personal income tax returns, accounts, insurance policies and any information which the liquidators might use to establish the former directors’ personal worth.

The documents are to be considered by liquidators as part of the public examination under the Corporations Act.

Information discovered during the examination could later be used in action against company directors or executives if the liquidators conclude that they have a case to start recovery proceedings.

This post is part of the thread: Bruck business sold – an ongoing story on this site. View the thread timeline for more context on this post.


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