A very emotional Ben Eaton said he will repay staff 100 per cent of their entitlements after creditors voted for him to regain control of Starleaton.
The voluntary administrator and creditors today approved the Deed of Company Arrangement proposed by Eaton after the company went into voluntary administration in January.
In an exclusive conversation conducted with Sprinter shortly after the second creditors meeting was held today, Eaton said he will fulfill the commitments within the Deed of Company Arrangement that will see staff repaid their entitlements.
“What I would like to communicate is a clear message that under this proposal all staff will get what they are entitled to and this will also maximise the opportunity for a return to other creditors.
“Staff will receive 100 per cent of what they are entitled to,” he said emphatically.
Under the Deed of Company Arrangement which will now serve as the blueprint for the future of the business, Eaton will set aside $800,000 of funds to restructure the business for 24 months to help repay staff entitlements of $1,384,325.64.
Employee entitlements are estimated to be: Wages ($105,445.55) for 28 employees; Superannuation ($133,396.73) for 35 employees; Annual Leave ($140,899.94) for 24 employees; Long Service Leave ($261,715.46) for 14 employees; Pay In Lieu Notice ($190,635.36) for 27 employees and Redundancy ($552,232.60) for 26 employees.
“It was critically important for this proposal to get this across the line as liquidation would have been a catastrophic event for everyone involved,” Eaton said.
Eaton confirmed that after paperwork is completed, he is likely to be back in charge of Starleaton as early as next week.
“Hopefully this demonstrates our intentions to maximise returns for everybody involved after 45 years in business. I look forward to returning to business and getting everything back on track.”
“We are also working with equipment manufacturers regarding the payments made for outstanding contracts,” Eaton said.
Sprinter understands that there was not a 100 per cent consensus to support the Deed of Company arrangement, with some creditors voting against or abstaining from the vote.
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