The statutory Report on Company Activities and Property has been released in relation to Starleaton Holdings, in administration. The report from Cathro & Partners to creditors is in preparation and should be available very shortly.

 Starleaton HQ ArtarmonOnce mighty, now insolvent, Starleaton HQ, Artarmon NSW

While more analysis is called for, Starleaton’s financial position appears shakey.

Total amount owing is listed at $17,459,425 – about $17.5 million.

Owed to Starleaton and recoverable for creditors, is estimated at around $1.9 million, but the majority of ‘owings’ is via related and inter-company loans totalling about $6.5 million with founders Peter and Leanne Eaton personally owed around $5.4 million. Interestingly, the company name Starleaton Pty Ltd is still registered to P&L Eaton and not in administration.

Fixed assets are negligible at around $400,000 but even this is dependent on the true realisable value of IT systems, furniture and the e-commerce website. Stock value is estimated at $4.3 million but much of this is borrowed against with PMSI (Purchase Money Security Interest) Creditors, who are first in line of the ordinary secured creditors. Besides, stock was recently offered by Starleaton at anything up to 50% discount.

Starleaton’s debtor book invoices were factor-financed by Octet Finance to the tune of around $1.4 million and some of those debts are unrecoverable because they are owed by companies who themselves are in liquidation, such as Shout Media and Pressfast.

The ultimate holding company of Starleaton is SDS Bidco Pty, also in administration. Starleaton Holdings owes SDS Bidco about $6.5 million. The other creditors are Eaton family members via investment vehicles, Octet and the NAB for a total of $14.9 million owing.

Creditors - employees suffer

The most distressing group of creditors are former employees. It appears that Superannuation SGL payments have not been paid for some time. When Unpaid wages, Long service leave, Annual leave are added, it totals $596,405 owed to employees.

Other major creditors (rounded) listed include:

ATO (Tax Office)      $623,634

Canon CPP             $512,000

AMEX                     $474,000

Zund                       $385,000

Neschen                 $355,000

Elof Hannson              $123,000

MLC Super              $122,000

Epson                     $  92,000

Ball&Doggett           $  85,000

Felix Schoeller          $  53,000

State rev Q,WA,Vic $  42,000

Neenah Paper         $  47,000

Permalite                $  36,000

Hahnemuhle            $  30,000

Mimaki                    $  27,000

And a host of others.

The full Cathro report to creditors will be released this Thursday 15th February and published here.

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