NSWRTA debt eats creditor dividends


Creditors from the bankrupt New South Wales Road Transport Association have finally been paid - eight cents in the dollar

Creditors from the bankrupt New South Wales Road Transport Association have finally been paid - eight cents in the dollar.

The century-old group, formerly the peak road transport representative body in the State, was liquidated in April 2007 after amassing significant debts.

Last week creditors received a final divided of around 4 cents in the dollar.

A letter to creditors dated December 8 from RMG Partners, the consultancy firm involved in winding up the company, explained a settlement had been reached to pay $426,532 in debt to the landlord of the group’s Sydney facility – significantly less than an initial proof of debt in June amounting to over $767,000.

"In this regard I note my appreciation of the efforts of Denrap’s legal advisors and the professional manner in which he conducted himself in protecting his client’s position whilst maintaining a commercial view," the letter from liquidator IJ Purchas reads.

A number of staff were laid off and members asked to pay dues in advance before the Association finally collapsed in 2007.

The Australian Trucking Association (ATA) immediately stepped into the breach, establishing an industry-led branch to represent road transporters in the State.

The ATA-NSW is run as an independent but wholly-owned subsidiary of the ATA out of a new office at Pymont in Sydney.

The group says membership has been growing strongly since forming the new body.

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