Former Hyundai PC importer, Hyundai MultiCAV, has entered voluntary administration after failing to pay about $1.4 million in debt.
South Australian-based administrators, PPB, were appointed by the company on April 22.
On March 7, the company changed its name from Hyundai MultiCAV to ACN 098 249 874 Pty Ltd. According to the administrators, it had ceased trading in October.
The first creditors' meeting was held in Adelaide on May 2. A representative from PPB, Marl Lieberenz, said the discussion had centred on whether to elect a committee of creditors to oversee the process.
Attendees had voted not to form a working group, he said.
The administrators would now conduct an investigation in the affairs of the company, Lieberenz said.
A second creditors' meeting will then be held on May 19 to discuss the findings.
UEG chairman, Vern Rickman, who attended the creditors' meeting, claimed Hyundai owed about $1.4 million to its four outstanding creditors. They were: PC-Club, UEG, and two New Zealand-based customers.
All four were without signed personal guarantees from the director of the company, Aron Jackson, Rickman claimed. UEG had ceased trading with the company in June last year but was still owed about $370,000, he said.
PC-Club sales and marketing director, David Lee, said it had served Hyundai with a Creditors Statutory Demand for Payment of debts worth $951,000 in June last year.
"This was just one of a number of demands served on Hyundai," he said.
This claim had also now risen to just over $1 million, Lee said.
PC-Club would continue to proceed against Aron Jackson and Jackar Holdings chairman, Ed Reynolds, personally for the money owing, he said. Jackar Holdings was allegedly set up by Jackson, Lee claimed.
"We intend to lodge a formal complaint to the Australian Securities and Investment Comission," he said.
According to documents lodged at the South Australia Supreme Court, the importer had challenged the claims made by PC-Club and applied to have them set aside. The appeal was rejected due to a lack of sufficient evidence in April. Hyundai was then put into administration.
UEG's Rickman said he would sit down with PC-Club shortly to decide on whether to launch further investigations into the collapse of Hyundai. These would have to be funded out of the creditor's pocket because the company had virtually no viable assets left, he said.
"There is about $1200 in cash, plus a couple of pellets of product," he said.
"It's disappointing to have a client cost us so much money. We are making sure we never get caught in this situation with our bigger clients again."