ASIC winds up insolvent companies to assist employees who are now able to access payments under the GEERS scheme

ASIC has obtained orders in the Federal Court in Melbourne to wind up 2 insolvent companies - Blackknight Pty Ltd (Blackknight) and Metro Excavators Pty Ltd (Metro Excavators) in insolvency.

The Court appointed a liquidator to both companies. Neither company opposed ASIC’s application.

In March 2007, a receiver and manager was appointed by the secured creditor to the three related companies, Metro Contractors Group Pty Ltd, Blackknight, and Metro Excavators.

In May 2007, the sole directors of the three companies became bankrupt.

As a consequence, 34 employees were unable to receive their entitlements including unpaid wages, leave, and redundancy pay.

ASIC’s successful application will now enable employees to claim their unpaid entitlements through the General Employee and Entitlements Redundancy Scheme (GEERS).