Fighting for Subbies Rights
Updated 27.09.17
The resolution at yesterdays creditors meeting to have Michael Caspaney of Menzies Advisory replaced as the Q1 Liquidator failed.
Justice can now be served with a proper investigation to continue on just how inappropriately Q1 was managed.
The move to change the liquidator was a costly and time wasting attempt to put a stop to the investigation into Q1 and has now made everyone involved all the more determined to get to the bottom of what happened.
Reason for the Resolution
The director refusing to hand over the company files adds substantially to the cost of the investigation because it makes it that much harder for the liquidator so when we were told the liquidators costs were the reason for the resolution, it would seem to be at odds with the behaviour of those seeking the resolution.
Participants
There were 3 very large creditors represented either in person or on the phone.
It is rare for a representative of the ATO to become involved in a liquidation but that's what happened yesterday and to great effect. The ATO are always the whipping boys in these liquidations along with subcontractors and suppliers.
You have to keep in mind that the ATO's money is our money and they are owed a very large debt in this liquidation so in theory, all tax paying Australians are creditors of Q1.
Details of the resolution to replace the Liquidator:
- For the resolution: 17 creditors with a value of $206,871.17
- Against the resolution: 13 creditors with a value of $2,402,132.47
- Abstain from voting for the resolution: 2 creditors with a value of $148,195.34
According to Insolvency Practice Schedule 75-115, if the Chairperson of the meeting does not use his casting vote in favour of the resolution to replace him, the resolution is not passed. Accordingly, Michael Caspaney did not use his casting vote, that's why he is still the Liquidator.
As you can see, the dollar value against the resolution was overwhelmingly superior to the dollar value for the resolution.
Mr Caspaney said at the meeting;
"In my career, this is by far the most blatant denial of my rights as a liquidator by not providing me with computer backups and server files which were obviously running until at least the 18th of July 2017".
Emails from the Q1 Director Impersonating a Subcontractor
You only have to read the emails I received yesterday from the director impersonating an outraged subcontractor to get an idea of the deceitful behaviour. Personally I am justifiably outraged at this behaviour.
Those emails and my replies are at the bottom of this article.
His first email came through "Wordpress" but after I approved it for publication and then replied directly to his email, his next email came back in his name, it was a rookie error.
Under the guise of being a subcontractor, he made false accusations against SubbiesUnited and against the Liquidator as "a bunch of crooks and liars just in this to line their own pockets."
He confected hypocritical outrage at the liquidators costs when in fact it's his lack of cooperation that is escalating those costs to the detriment of all creditors.
From his email, he clearly thinks it's ok for some creditors to lose millions because "they are large companies and they have insurance". Some of them don't have insurance and the costs of claims increase the costs of all policies for those who do.
He said most subbies were paid "all bar a couple", tell that to the dozens who weren't paid, tell that to their wives and kids.
If any liquidating builder ever wanted to come and discuss what caused them to take that path, we at SubbiesUnited are more than happy to report both sides of the story.
22.09.17
There is a move afoot to change the Queensland One Homes Liquidator at Tuesday's Creditors meeting. The incumbent Liquidator is Michael Caspaney of Menzies Advisory who is obviously doing his job too well.
Creditors must turn up to the meeting to defeat this move by desperate people who don't want to be investigated and who have not cooperated.
We believe this move is another attempt to defeat creditors.
Meeting details;
10.30 am, 26th September 2017 at Level 19, 10 Eagle Street Brisbane Qld 4000.
Proxy vote and proof of debt forms will need to be filled out again.
If you cannot attend the meeting, you can insert the name Michael Cronk on the proxy form.
Click here for printable proxy vote form.
Click here for printable proof of debt form.
REFRESH YOUR BROWSER FOR CORRECT PROOF OF DEBT FORM.
Email the forms to support@subbiesunited.com.au by Monday afternoon the 25th September at the latest or take them to the meeting.
Please feel free to email them to us to be checked.
It's your money they have, vote to get some of it back where it belongs, in your pockets.
First Creditors Meeting
At the first meeting of creditors on 27 July 2017, 12 creditors of Queensland One Homes Pty Ltd voted to change the Liquidator appointed by the Q One director Paul Callender. Only 4 creditors voted against changing the Liquidator.
Since that time, the current Liquidator, Michael Caspaney from Menzies Advisory, has tried to obtain financial records from the director and from the company run by the director’s wife. As reported to creditors, Caspaney has had “little or no return” but that doesn't mean he is not making substantial progress.
The director provided information to the previous liquidators for his report as to affairs as published in the first letter to creditors. These figures included debtors, creditors and the value of plant and equipment but when Caspaney asked for the books and records of the company his enquiries have resulted in “little return”.
Company records don't disappear overnight, they have to be kept for 7 years for tax purposes. A company turning over millions of dollars would have a huge storage of records.
What does this mean?
- Does it mean the director doesn’t want Caspaney to have the books and records?
- Does it mean the director has something to hide?
- Does it mean the director or his related companies owe money to Queensland One Homes Pty Ltd?
- Does it mean that all of the contracts novated or handed over to the director’s wife’s company should have been paid for by the wife’s company?
- Or does it mean everything is all above board?
You be the judge. An extract from the Menzies Advisory report to creditors summarises Caspaney’s investigations as follows:
- Recovered company records provided to the previous Liquidator;
- Pursued the director for computer records, email accounts and all books and records of the company with little return;
- Reviewed Deeds of Novation executed by the company prior to the first appointment of the Liquidator on 6 July 2017;
- Pursued a related company for computer records, email accounts and all books and records of the company with little or no return;
- Written to the company’s debtors demanding payment;
- Liaised with many creditors of the company as well as a creditor who had large claims against the company before the courts when the original Liquidator was appointed;
- Interviewed the director;
- Interviewed former employees of the company;
- Liaised extensively with the solicitors acting for the director;
- Liaised extensively with the solicitors acting for the related company;
- Investigated alleged unauthorised transactions; and
- Dealt with many other issues that are at this stage considered privileged and thus he is unable to disclose those details to us.
I say subbies should be going to the meeting on Tuesday and finding out what Caspaney has to say about his independent investigations.
Why are creditors trying to get rid of Caspaney?
- Is he getting too close to the director’s Achilles heel?
- Is he digging too deep?
- If you read between the lines, the current liquidator must be ruffling some feathers.
How often does this happen: A company runs their business, pays their debts, receives money from their customers, pays their staff, provides the wife’s company with everything it needs to take over the customers and then when a builder unfriendly liquidator is appointed by the creditors, all of a sudden, they can’t access their computer records, can’t access their emails and have nothing to give that unfriendly liquidator?
As well as this, I have seen one of the novation agreements that handed over the company’s jobs (which have been worked on by subbies without payment) to the wife’s company and it looks to me that the solicitors acting for Queensland One Homes Pty Ltd also acted for the wife’s company.
I might be wrong about this so maybe one of you needs to ask the question at Tuesday’s meeting.
The questions are;
- Did the same firm of solicitors act for Queensland One Homes and for the director’s wife’s company?
- If so, who was looking after Queensland One Home’s interests?
- Is there a contract of sale which conveys the company’s assets for the correct value to the wife's company?
- Has Queensland One Homes received the correct amount of money for the jobs completed by subbies to the benefit of the director’s wife’s company?
If anyone is promising subbies that they will be paid, despite the appointment of a liquidator to Queensland One Homes, have a think about where that money is coming from.
In my view that money should have been paid to Queensland One Homes BEFORE the contracts were transferred to the wife’s company. The wife's company has not paid one cent to Queensland One Homes Pty Ltd.
Once again, subbies have been sacrificed so that the director has another life in his wife’s company.
Caspaney should be allowed to finish his job. Let him conduct the public examinations into everyone involved in this fiasco. Let him continue to put pressure on all of those who have and are benefiting from the Phoenix that came out of the liquidation of Queensland One Homes Pty Ltd.