In recent months the Queensland District Court has found the directors of two former Queensland based companies guilty of fraud. This will hopefully bring a small amount of relief to those who have suffered at the hands of the fraudulent directors in question.
The first case, relating to the Kleenmaid Group of companies, is infamously one of the longest criminal trials held in Queensland.
Prior to its collapse, Kleenmaid provided retail whitegoods to an Australia-wide customer base through a series of group owned and franchise stores. Deloitte were appointed as liquidators in mid-2009 and, at the time of writing, their website notes that the Kleenmaid group has over $102 million in liabilities. Reports issued to creditors over the history of the liquidation tell a story of missing records, questionable transactions, minimal cash flow and unrecoverable inter-company loans all leading to a devastating “little chance of dividend” outcome for creditors.
Click here to read more.