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Revealed: Excom owed millions to employees and creditors

Liquidators are in discussions with interested buyers and hope to close a deal in two weeks

The liquidators of failed IT training organisation, Excom Education, are in discussions with potential buyers as it discovers the millions owed to employees and creditors.

Victor Dye, Nicholas Giasoumi and Roger Grant from Dye and Co were appointed as liquidators on August 25.

The training company shut its doors across the nation. When IT students showed up for class in Sydney, doors were locked with a note displaying ‘Excom is closed until further notice'.

According to liquidator, Roger Grant, Excom employee claims, which include un-paid wages, severance pay and superannuation, were in the order of $2.7 million.

Secured creditor, Commonwealth Bank, was owed $4.5 million, unsecured creditors were owed about $6.7 million and the Australian Taxation Office $4.4 million.

Reseller, Anittel, was the telecommunications provider for Excom in Sydney and is one of many unsecured creditors on the list, according to executive chairman, Peter Kazacos.

Grant told ARN buyers had expressed interest into purchasing the company.

“We’ve had buyers interested in all of the Excom assets, some are more interested in certain sites, and we’re exploring and exhausting those options before we need to make any further decisions,” Grant said.

“Our focus at this point is to get the sale of assets done and once we’ve got a pool of funds, there will be investigations and we’ll be looking to distribute whatever funds have been recovered.”

Grant anticipated the sale process to take two weeks, but it may take longer if it was unable to find a suitable buyer.

Employees had been notified to recover funds through applying for the Government’s General Employee Entitlements and Redundancy Scheme (GEERS).

“We’ve sent notifications to employees saying it would take us some time to realise the assets, and in these circumstances the GEERS program will kick in and look to payout entitlements under that program,” Grant said.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ARN, Australian Taxation Office, Commonwealth Bank, Excom
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Comments

1

ex employee

Thu 09/09/2010 - 18:35

Whats makes people think excom will recover the money owning to their employee's?

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