Around 100 unsecured creditors are likely to have to kiss goodbye $1.3 million they are owed as liquidator Hall Chadwick picks over the wreckage of failed retail chain Sunet Technologies (formerly trading as Sunlit Technology).
The company, registered as Sunet Technologies, fell into liquidation last month after directors David Wu and Paul Johnson (pictured) failed to resolve a bitter dispute over company financial records and the division of company assets after the pair signed an agreement to split the company in September.
Liquidator Paul Sweeney from Hall Chadwick told ARN it is unlikely that unsecured creditors will see a return on the money owed by Sunlit. Furthermore, Sweeney said the company's 40 staff will not receive their full employee entitlements.
However, the Commonwealth Bank, a secured creditor to the tune of $250,000, has since received a "substantial payment", Sweeney said.
Hall Chadwick, which is also acting as the administrator of former Ansett subsidiary Traveland, has conducted the first part of its initial investigation and has already sold some Sunlit assets, including two of the retail stores.
"We have resolved it as best we could at the moment," said Sweeney. "The second part of the investigation will continue for some time."
Sweeney said he will lodge a report with the Australian Securities and Investment Commission (ASIC) and has not ruled out the possibility of pursuing legal action against Wu or Johnson if there appears to be some failure by either party to act in accordance with their requirements as directors.
"People create a mess over a period of one year or 10 years, or however long they've been in business, and then expect an administrator to sort it out within a certain [timeframe]," Sweeney said. "It's not that easy."
Meanwhile, the dispute between Wu and Johnson wages unabated. Both directors have issued letters and documentation to creditors with allegations such as misconduct, theft, alcoholism and the fire sale of assets to avoid having to pay back creditors.
Photograph: Former Sunet Technologies director Paul Johnson