Redstar has bled out financially say liquidators

By: Rob McKay


PwC takes on ‘risky’ task as TWU lashes government

Redstar has bled out financially say liquidators
Redstar Transport has no cash

 

There is not enough cash in Redstar Transport Pty Ltd to conduct its liquidation, the financial services firm that has taken on the task says.

Stephen Longley and Martin Ford of PwC, the business title of PricewaterhouseCoopers, state that business was in the process of ceasing operations and making employees redundant when they were appointed "and we expect this process to be completed by the end of this week".

"This is a terrible situation at any time, let alone on the eve of the holidays," Longley says. 

"We are doing everything we can in the circumstances to manage the fallout."

Redstar does not have any funds available for the conduct of the liquidation, "which means PwC may not be paid for much of their work". 

"PwC is taking a risk by accepting this appointment, however, somebody needs to stand up for these 400 employees and make sure their entitlements are calculated and paid by FEG as soon as possible" Longley adds.

"The liquidators thank Toll and ANZ for making financial pledges which allowed the liquidators to consent to the appointment. 

"Now that the company is in liquidation, employees will be able to have their entitlements paid by the federal government’s Fair Entitlements Guarantee (FEG) Scheme.   

"It is heartening to see some companies take their social responsibility seriously."


Read how news of Redstar Transport’s demise broke cover, here


As sources with an understanding of the company suggest the company struggled with significant changes in the industry and unsustainable customer demands, the Transport Workers Union (TWU) sheeted responsibility to the federal government for lack of action on industry reform.

"The crisis in trucking has struck again, this time bringing a transport operator to its knees and leaving 300 workers without a job just days before Christmas," TWU national assistant secretary Nick McIntosh says.

"Our thoughts are with the workers and their families as they navigate the holidays wondering what comes next.

"This is yet more evidence that the federal government’s abolition of the Road Safety Remuneration Tribunal (RSRT) was nothing more than a free pass to the big end of town at the expense of operators being able to survive and pay their workers."

The TWU is calling on "wealthy companies at the top of the Redstar Transport supply chain" to donate to the workers who’ve lost their jobs.

Further, Toyota's financial solutions arm, Toyota Finance Australia (TFA), confirmed that it, "along with many other financers ... has provided asset finance to the Redstar Transport Group of companies".

"TFA is saddened to learn from Redstar directors that the Company is experiencing financial difficulty and will not continue as a going concern, resulting in likely distress and hardship to its employees," a company spokesperson tells Owner//Driver.

"TFA can confirm it did not withdraw financial support from Redstar during this time.

"Redstar have appointed PWC as liquidators and TFA can confirm Hedge & Associates as receivers."

 

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