A Newcastle Bride who paid more than $10,000 in deposits to secure a wedding venue in Newcastle’s CBD has been told that the company is facing liquidation.
Emily Mursa, 22, was recently contacted by the Venue and told that it was potentially being sold. When she emailed them back with her concerns and asked for confirmation of her booking, Mursa was told to ‘sit and wait’ for further details.
Lake Macquarie-based band Kaylens Rain had planned a concert at the venue next week, which was cancelled on Monday by the company without prior notice. Musician, Glen Harrison, said his band had sold 50 tickets to the concert and he does not know how they would compensate fans as they have ‘no control over ticket sales’.
The company has since messaged customers cancelling other upcoming events, with many taking to social media demanding refunds.
What is Liquidation?
Liquidation is the process of winding up a company, typically if it has been trading insolvent. Insolvent trading means a company is unable to meet its financial commitments or pay its debts as and when they fall due. A company’s assets are subsequently liquidated (or sold) to pay debts, and the company is deregistered (or closed).
When a company owes you money, you are considered a creditor and as a creditor, you are entitled to get as much of your money back as possible, subject to rules and regulations about which creditors rank in priority.
Once a thorough investigation has been undertaken and a full accounting of the company is available to the liquidator, distribution of the assets to the creditors can begin. The petitioning creditor will get paid first. The balance of the monies available will then be distributed as follows:
- Liquidator’s fees
- Secured Creditors
- Employee’s owed wages or superannuation
- Outstanding employee benefit payouts
- Unsecured creditors
Green and Associates
At Green and Associates we have years of expertise in matters involving debt recovery, ranging from simple enforcement measures to complex. Every matter is handled on a case-by-case basis, and we begin by a arranging a conference with our clients to determine the prospects and strategy to move forward.
If you or someone you know find yourself in need of assistance with debt recovery or any other legal issue, you may contact our expert commercial lawyers on (02) 8080 7585 for representation or advice.
