Metro collapse continues with $200k lease breach
THE fallout from the Metro Builders collapse continues with a claim launched in the District Court for more than $234,000.
Arend and Karen Den Exter owned Metro Builders' Musgrave St premises and are suing Glenn Finning for breaching a five-year lease, commencing on November 2017.
Terms of the lease included annual rent of $42,240 and 23.49 per cent in outgoings, which included rates and charges, repairs and maintenance, gardening, security and care-taking, insurance, garbage and waste disposal, management and power and cleaning to common areas.
The claim was lodged by Grant Simpson Lawyers on September 10 on behalf of the Den Exters and said Mr Finning had not paid rent or outgoings since his company went into liquidation on June 12.
Mr Finning declared personal bankruptcy last week, the day after the claim was lodged.
Liquidator Christopher Baskerville from Jirsch Sutherland Insolvency Solutions said it was unlikely any money would be coming from Mr Finning's personal affairs.
The liquidator's report, released last week showed Metro Builders had 138 unsecured creditors and owed more than $2.4million.
"We couldn't find any assets in his name so there is unlikely to be any return to any class of creditor from this liquidation," Mr Baskerville said.
"The only other source of recovery is to chase a claim against the ATO for unfair preference payment ... but the maximum claim is about $70,000 in total."
All 15 Metro Builders staff were paid their entitlements, except superannuation they were owed, under the Federal Government's Fair Guarantee Scheme.
The liquidators are yet to confirm with the Australian Securities and Investments Commission whether Mr Finning has committed any offences under the Corporations Act.