Former mayoral candidate forced into involuntary administration
CREDITORS will meet next week to discuss debts owed by former mayoral candidate Michael McMillan's business.
Mr McMillan, who is now working in North Queensland in public relations, purchased the Stockland Rockhampton Coffee Club franchise back in 2009, but sold late last year.
The creditors will meet with liquidators Deloitte in Brisbane on February 28.
Deloitte's lead partner for restructuring services, Richard Hughes, said the business was forced into involuntary administration due to unpaid taxes.
"The company was wound up by the Australian Taxation Office (ATO), on the petition of the ATO in court so, it wasn't voluntary," Mr Hughes said.
"There was a debt owing, the debts owing under GST hadn't been paid and PAYG hadn't been paid.
"As part of the normal ATO debt collection practices they persued the debt and ended up in a winding up and we were contacted."
Mr Hughes said in spite of the "difficult situation", a positive outcome was achieved.
"Ultimately I think it's a good outcome. We were able to sell the business as a going concern, staff were able to retain their jobs," he said.
"The creditors are going to receive, or at least the bank involved, is going to receive some recompense for the debt they had in there."
Mr McMillan said he was in negotiations with the ATO for six months before the liquidation was triggered by a technicality and not a lot of money was owed to about eight creditors who would be at next week's meeting.
He also said he chose to leave the business and he and his family had moved on since the sale, but endeavoured to look after their financial commitments in a timely manner.
"It was probably time to move it on to someone who was in a better position to take the business moving forward, so that's what we endeavoured to do - we sold the business," Mr McMillan said.
"It's not that we had high debt at all."
The business was sold as a going concern and continued to trade throughout the process.
The amount owing has not been disclosed.