Reactiv NSW sank with $2.7m debts

Sydney print business Reactiv NSW Pty Ltd had $2.7 million in debts including $2.1 million owing to unsecured creditors when it entered liquidation in August 2019.

Focus Print Group acquired Reactiv NSW Pty Ltd from owner Kingsley Moore before it was put into liquidation with the deal including Reactiv’s client list, printing equipment and eight to nine of its 22 staff.

At the time Moore told Sprinter all staff at Reactiv would be paid in full with all entitlements covered. He also said his focus was also on supporting Reactiv’s creditors as much as possible.

A recently released statutory report for creditors, prepared by PKF liquidator Bradley Tonks, shows the total assets of the business at liquidation were $88,133 with $730,116 owed to secured creditors and $2,094,654 owed to unsecured creditors.

Any likelihood of a dividend for unsecured creditors has also been ruled out.

“At this stage in the Liquidation it is unlikely that there will be a dividend to unsecured creditors,” the letter from Tonks says.

On the date of liquidation, Reactiv had recorded debtors of $62,486 which were not subject to the sale with the letter saying Focus Print Group negotiated to purchase these for $49,500 which removed the risk of bad debts for the company.

There is also an issue relating to outstanding rent and other outgoings in relation to Reactiv’s site at Rydalmere in Sydney.

In the report Tonks also says insufficient information had been made available to get a true explanation of the company’s financial position at liquidation.

“I am of the view that in these circumstances insufficient information/documentation is available to correctly record and explain the Company’s financial position and/or enable a true and fair financial statement to be prepared,” the letter says.

A Personal Property Security Register (PPSR) shows secured parties include: Hermes Capital with 19 registrations; Spicers Australia; Ball & Doggett and Wilmaridge Pty Ltd, or Direct Paper. The list also includes one registration to Kingsley David Moore which the liquidators say is currently being reviewed.

The letter also says investigations are continuing as to whether Reactiv was trading whilst insolvent at the time of liquidation.

Reactiv was split into two companies. Reactiv Pty Ltd which owned the printing presses and traded with customers and Reactiv Services Pty Ltd which engaged and paid the employees of the business.

At the time of entering liquidation, Moore attributed the demise of his business to financial problems inherited during the 2015 takeover of another Sydney print business combined with his own health issues.

“My staff worked right up until the end and they have all been paid out in full and all their entitlements are covered. What I am trying to do is do the best I can to support the creditors as much as I can. I don’t have an answer right now but all I know is I want to support the creditors as far as I can,” Moore told Sprinter at the time.


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