Liquidators probe multi-million-dollar sale of collapsed Mundella assets
Creditors are still owed $12.5 million as liquidators find preliminary evidence of more than $2 million in potentially insolvent and unreasonable director-related transactions at the collapsed dairy manufacturer, Mundella Foods.
Liquidators of the collapsed dairy company Mundella Foods have uncovered nearly $800,000 worth of potentially unreasonable director transactions and are investigating whether the multi-million-dollar sale of Mundella Foods and Margaret River Dairy Company to Artisanal Market constitutes an uncommercial deal. The former director of Mundella Foods, Hayden Russell, denies any improper transactions and claims he acted in good faith, using cash withdrawals to pay for operations and workers' wages.
Workers, who are priority creditors, are still owed almost $940,000 in unpaid wages, superannuation, and entitlements, with secured and unsecured creditors owed a further $3 million and $8.5 million respectively. The liquidators report states that it is unlikely Mr. Russell has the financial capacity to meet any claims brought against him, and further investigations would require additional funding from creditors.
Brief written by urgent.news from ABC News AU's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
