Outcome for Pierce Engineering creditors meeting revealed
THE FIRST creditors meeting for Pierce Engineering was held on Tuesday night with no decisions made.
Appointed administrators Worrells Solvency and Forensic Accountants – Rockhampton office advised 10 creditors (either in person or by proxy) attended the Empire Hotel Apartments meeting along with one observer.
The procedural meeting was held to determine whether creditors wished to replace the administrators or to appoint a committee of inspection.
Neither of which occurred at the meeting.
The meeting came after the news earlier this month the 52 year-old Kawana family business had gone into voluntary administration.
A statement released by the administrators claimed the company suffered a “financial hit” following a $420,000 letter of demand was received from the liquidators of the JM Kelly group.
The statement went on to say the administrators were “optimistic that a proposal will be put forward that will see control of the company revert back to the directors in approximately a month’s time with the business continuing to trade and employ staff in the Rockhampton area”.
It is understood the company owes at least $2.475m to creditors and $1.18m is owed to them.
The business supports 40 staff, none of which are owed wages.
The next meeting of creditors and involved parties is planned for April 2