Brisbane-based XL Express, which went into voluntary administration in late June, has now gone into liquidation with more than $40 million in estimated debts.
XL Express appointed FTI Consulting on June 27 to conduct an “urgent assessment” of the company’s viability, which also includes 17 other entities under the company’s brand.
The group’s 200 employees were stood down after XL Express was locked out of its Smithfield premises in Sydney’s west in late June, due to rent not being paid, according to its administrators
An ASIC notice on Monday, August 4, confirmed creditors had voted to wind up the 17 associated companies under the XL Express group.
According to a News Corp report, the administrators estimated there were up to $41.9 million in total debts across the XL Express companies, including $5.3 million owed to 200 former employees and $3.4 million owed to the Australian Taxation Office.
NAB, Judo Bank and ScotPac were among the secured creditors and business lenders with the largest bundle of debts, totalling an estimated $18.9 million, the report from administrators Kelly-Anne Trenfield, Ross Blakely and Joanne Dunn of FTI Consulting said.
Other unsecured creditors were owed an estimated $12.4 million.
Manheim Auctioneers had been engaged to begin selling off the XL Express fleet of 193 vehicles before it went into administration.
The administrators also noted they were also aware of multiple injury compensation claims from employees, although they were still being processed by insurers.
This is where the system is wrong, employees should be first cab off the rank because without them the company wouldn’t even turn a wheel. As far as banks go if they let a company accrue debts to this extent without starting to chase them up earlier that’s their problem. The poor old worker cops the brunt again
Totally agree. Drivers turn up for work, do the job and should be paid first. This amount of debt should never have been allowed to grow to this amount. Now you seem to think its OK for Drivers to be first ones to assist debt payments by. not being paid at all. Borrow more to pay these men. AND approximate injuries debt too. Only then do you know the sum total of debt. Disgraceful management and ignorance towards men “just doing their job”. Marjorie Chandler.
your absolutely right but it’s always the same money looking after money and to make matters worse the banks are insured against losses but the bank directors need to look after their multi million dollar bonuses
You are absolutely right what you say Barry. The banks should definitely take the blame for letting it get to those sort of debts. I am a driver for a large company here in nz, so my heart goes out to all those 200 employees of that company affected..
Keep your heads held high people.
Rail
Get trucks off the roads
Roger, your comment “get trucks off the roads” is way too simplistic. How are you going to get goods from Brisbane to Darwin, without trucks? Or, Perth to Darwin? Are you saying that we should construct a railway-line to every Coles, Woolworths or Aldi store? To every Bunnings store? I’m a retired truckie; and, I’ve worked every job from sweeping a warehouse floor, right up to managing it. I also have a strong connection to railways. My grand-father worked on the railways all his life. I understand that railways are much better at moving bulk loads of one commodity; or, large quantities of ISO containers. But, in a country the size of Australia, with only 27 million people, trucks are still very much needed. Get real, mate, and think things through before you hit the key-board.
I left before they went belly up, so if I could see the writing on the wall I don’t know how the banks couldn’t see it. The worker should get there money before anyone else because they are not at fault
Surely the Taxman should see there is a issue as well and jump in for the employee. But NO they are worse than the banks
I bet the bosses walk away with their big flash house, cars, yatchs and other play things intact. The banks and bosse don’ give two bob about workers rights or losses as long as they can continue to live their lives of luxury.
Wow how does this happen. Why were employees not paid, rent not paid.
Where are the banks in this and were they being paid and the taxation department, surely bells have been ringing for a while, this level of debt didn’t happen overnight.
How often were they being paid books done and why wasn’t it flagged.
It is a tough time for all. This is going to keep happening again and again. There are no winners and lots of losers no blame to be allocated the government and unions are trying to ensure the workers get a fair go. However this approach is killing Australian industries.
Responsibility and accountability. If you look at the Industry as a whole there are serious issues causing unimaginable damage and some of those in senior positions distance and legally protect themselves from any loss.
It is not only the immediate loss of income for the workers but the flow on effects of monies owed resulting in family breakdowns; evictions from non payment, homelessness, suicide.
Many experienced drivers are leaving the transport industry due to cost versus reward; and not receiving pay for work already done should be a crime.