The directors of appliance company Kleenmaid are now facing investigation of their personal finances following a decision by creditors to place the company into liquidation. They are also facing an ASIC investigation for trading while insolvent.
Several creditors have contacted ChannelNews claiming that they believe money was paid into offshore accounts when the company was trading while insolvent.
The placing of the company into liquidation will allow investigators to take action personally against directors Brad and Andrew Young who have both been linked with the Mormon Church. One company on the radar of investigators is England & Young Holdings Pty Ltd, a company that is co-directed by Andrew Young.
This company claims it is owed $9 million following the collapse however questions are being asked about payments made to the compan y prior to the collapse say investigators.
Creditors of the Sunshine Coast-based appliance company voted to liquidate the company yesterday, after being placed into voluntary administration last month owing creditors about $100 million.
Creditors voted to wrap up the company at a meeting in Brisbane yesterday.
An investigation by administrators, Deloitte, found Kleenmaid may have been insolvent as early as June 2007. Deloitte spokesman John Greig says they are now looking into whether the company directors were trading while insolvent.
“They potentially can become personally liable for those debts they incur during the period the company was trading while insolvent,” Mr Greig said.
The ABC said that Kleenmaid director Andrew Young read a statement to the creditors’ meeting. “I’d like to extend my sympathies to people who’ve lost in the equation,” Mr Young said.
Deloitte says it is unlikely to recover much of the money owed to creditors.
