Last Friday’s announcement of a last-minute DOCA (Deed of Company Arrangement), regarding Starleaton’s administration could be potential welcome news for creditors. It all depends on the terms of the DOCA - they typically contain debt repayment plans, and creditors have the right to accept or reject the terms.
Inspired Print of Campbellfield, Vic - they paid twice for $10k Zünd upgrade kit, eventually sent by the manufacturer
A Deed of Company Arrangement could be the last hope for unsecured creditors and staff owed entitlements to get any significant recompense from the administration of Starleaton.
While the appointed Administrator of Starleaton Holdings and SDS Bidco has adjourned the second meeting of creditors until Friday 8th March in order to assess the Deed of Company Arrangement proposed at the last minute, two further sign companies have approached wideformatonline claiming they paid for equipment or parts upfront, which has not been delivered. Reportedly, creditors will be further updated by Cathro Partners on Friday 1st March.
More pre-paid equipment yet to be delivered
Inspired Print of Campbellfield, Victoria ordered an upgrade kit for a Zünd table cutter last October, 2023, and were asked to pay upfront -$10,000 - despite having a trading account. According to Director George Sinis, Inspired were promise delivery in two weeks.
Mr Sinis says: “Four weeks later I called to enquire about the lateness of our delivery only to be told that there had been a delay in shipping. By December I was seriously getting concerned as to what was going on, as my attempts to find out answers were being deflected by excuses and more promises of Christmas, shipping delays etc. When we returned back to work around the 8th January I was becoming extremely frustrated with the lack of information and continued excuses. I then found out that the company had entered into Voluntary Administration.”
Mr Sinis goes on to say he rang Zünd Systemtechnik in Switzerland, desperate for the parts, only to discover they had no record of an order for his upgrade kit being placed. He says Zünd were ‘brilliant’ in their helpfulness and, after he paid them directly, airfreighted the upgrade kit. He remains ‘very disappointed’ at being left $10,000 out of pocket with little hope of recovery unless the DOCA repayment schedule works.
The second company, bringing the total up to five who have allegedly paid for equipment never delivered, is a Queensland Signage company who can not be named as litigation is underway. They are a very respected provider of all kinds of signage across Australia and New Zealand, established over 30 years. The Director paid a deposit for a Zünd table cutter (router) in May 2023. This was to be a used refurbished machine, traded in by Starleaton against a new purchase. Delivery was promised on 13th December. On December 1st, the Director was asked to pay the balance, making a total of $137,500 – which he did. Like many, he was astounded when Starleaton entered administration on January 18th.
This company Director says: “The machine never left nor was refurbished for delivery, so how could it be intended to supply it to us? We were fobbed off with excuses. Then we also got the VA news on Jan 18th.”
Similar very distressing situations have also been alleged by Allpride Signs of Newcastle, NSW; Blueprint Digital of Marrickville NSW and Broadley Signs of Cardiff, NSW. The total sum involved appears to be well in excess of $500,000.
There is also an unverified report of another major printer pre-paying approx. $350,000 for a new fully optioned Zünd cutter, but not receiving it as yet. It is understood to be subject to litigation.
It is worth noting that these amounts are not for normal trading account purchases, but were paid over as deposits or full payment for equipment under contracts of sale.
The Administrator and a Director of Starleaton have been approached for comment.
We sincerely hope that the Deed of Company Arrangement proves to be a remedy to these and other unsecured debts, without jeopordising staff entitlements or legitimate claims from those owed their deposits and pre-payments back.
