Companies linked to GDK Group collapse into liquidation owing at least $45m, impacting Sydney factory

In a bizarre twist, several of the collapsed companies have been named after obscure references from The Lord of the Rings, confusing staff who are owed money.

EXCLUSIVE

A string of companies involved in the building industry have collapsed into liquidation with cumulative debts of more than $45 million.

A news.com.au investigation has found that 11 companies that appear to be linked to a cabinet manufacturing factory in Sydney’s Wetherill Park and also with offices in Melbourne and Hong Kong part of the GDK Group have plunged into liquidation while another related company is due in court later this month.

In May, Himlad Pty Ltd went into voluntary liquidation with debts of $29.8 million, according to a statutory report filed with the corporate regulator.

Since then, the tax office has forcibly wound up multiple other companies in the Federal Court, as recently as this Tuesday. Initial estimates from one liquidator put the new debts at more than $15 million for four of the most recent company collapses.

Staff have been left fuming as they are owed $2.1 million, including $885,000 in superannuation which is not recoverable through government rescue schemes.

The Western Sydney factory continues to operate under a different business in what at the time was labelled a “restructure”, with staff’s pay now coming from a new entity which was only registered in March.

And in a bizarre twist, several of the companies have been named after obscure references from the iconic book series The Lord of the Rings, such asHimlad, Hithlum, Thargeliou, Belegaer, Ossiriand, Nevrast, Dorlomin and Avernien.

The strange business names left one staff member, who is owed $25,000 from unpaid superannuation, “confused” and unaware of some of the companies.

Nikolas Simic, who appears to be a Lord of the Rings fan.

Nicholas Kalikajaros, the director of some of the companies.

Nikolas Simic and Nicholas Kalikajaros, the two directors linked to the companies, did not respond to requests for comment and no action has been taken against them personally. The company was also contacted for comment but its phone lines rang out.

In May, Himlad Pty Ltd formerly trading as Imprint Australia went bust, but business continued as normal, with workers’ payroll and leave entitlements switching over to another company called Joinery Manufacturing Solutions Pty Ltd.

Then in July, three other companies went into voluntary liquidation – Nevrast Pty Ltd formerly trading as Imprint Furniture, Dorlomin formerly trading as Imprint Systems and Avernien Pty Ltd formerly trading as GDK Ventures. Liquidation reports say these companies were part of the GDK Group.

Last week, the Federal Court ordered two more companies to go belly up and Henry McKenna of insolvency firm Vincents was nominated as the liquidator.

Hithlum Pty Ltd formerly known as GDK Group (Global) Pty Ltd was ordered to go into liquidation due to unpaid tax debts of $261,000 while Thargeliou Pty Ltd formerly known as Imprint Street (Australia) Pty Ltd had $90,000 in unpaid taxes.

Last Friday, Ossiriand Pty Ltd was ordered to go into liquidation. The liquidators Alan Hayes and Wayne Marshall of Hayes Advisory have been contacted for comment.

On Tuesday, another slew of businesses collapsed by court order – GDK Group Pty Ltd, Belegaer Pty Ltd, GDK Projects Pty Ltd and GDK Holdings.

The appointed liquidators, Jonathon Colbran, Tristana Steedman and Richard Stone of RSM, told news.com.au these four firms “have total creditor claims likely to exceed $15 million”. Of that, the ATO is owed at least $500,000.

The tax office has also initiated winding up proceedings against Joinery Manufacturing Solutions Pty Ltd, the entity staff are now employed by, with a directions hearing set for December 19.

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Ossiriand is one of the company names and also a wooded region in The Lord of The Rings in an obscure reference. Picture: Tolkien Estate

Himlad is the entity staff were employed through, and it is also a cold barren land in the fictional Middle Earth. Picture:Arluin/LOTR.fandom.com

At its peak, the GDK factory had around 100 staff and 50 contractors but current employees say that number has shrunk to around 20 amid mass resignations.

Another employee, Anton*, said “I’m pretty pissed off” as he claims he is owed three years’ worth of superannuation.

The cabinet maker has made multiple reports to the tax office about his unpaid superannuation over the years.

“Essentially nothing really changes. We’d just notice on our pay slips it’s a different company number” whenever a GDK company went into liquidation, Anton said.

“It’s what they’ve been doing for years and years.”

When Himlad went into liquidation in May, which was the entity that previously employed staff, the director Nikolas Simic sent an email to the workforce informing them the business was restructuring.

“We are in the process of completing an internal restructure of the business to make sure that we continue to thrive into the future,” the message read.

“The goal is simplifcaton (sic) to derive as much efficiency and value to set the business up to weather the current economy and successfully navigate the future.”

The email went on to say that employees were being moved “to a new company within the group” called Joinery Manufacturing Solutions Pty Ltd.

Anton said this message “painted a rosy picture” of Himlad’s demise when in reality “It just sucks”.

Later on, in an update to staff in June, another email was sent that read “I’d like to emphasise that I am fully committed to finalising this and ensuring that Himlad’s unpaid superannuation is provided to the ATO”.

The tax office has taken a number of companies linked to the GDK Group to court and most have now been wound up into liquidation.

The email sent to staff.

Shane* quit GDK in July after growing sick and tired of his pay arriving late and not receiving his super.

He says he is owed around $7,000 in unpaid superannuation and added that he has been “screwed over”.

“I’m owed one year of super, it’s not that much, but it’s still money,” he said.

He said the “principle of it” didn’t sit right with him.

A contractor, Mario*, $20,000 out of pocket has also been left outraged as any return on his losses is unlikely.

“You should write off your debt if you have not already done so,” the liquidator of Himlad, Daniel Quinn, warned creditors in the statutory report.

“They just didn’t pay invoices,” Mario said.

“I ended up saying I can’t work for you anymore, and I’ve been chasing them for money.”

Staff await the outcome of the court case for Joinery Manufacturing Solutions Pty Ltd on December 19 which could see them out of a job right before Christmas.

*Names withheld for privacy reasons

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Originally published as Companies linked to GDK Group collapse into liquidation owing at least $45m, impacting Sydney factory