Ex-Ice Arena company operator may have traded while insolvent, liquidator says

New questions have been raised over the ex-operator of Adelaide’s Ice Arena, with a liquidator saying $130k is owed to workers and it may have traded while insolvent.

The liquidator of the former operator of the Ice Arena – which is a related entity of the current operator – says its investigations indicate the company’s director may have continued to trade the company while it was insolvent.

It has also been revealed the former operator of the Ice Arena at Thebarton owes more than $130,000 in unpaid superannuation to employees.

Ice Arena Adelaide Pty Ltd was placed in liquidation in late February with debts of more than $3.5m, with Agile Group at that time taking over the operation of the Ice Arena venue.

Michael Boyle, the sole director of Agile Holdings (Aust) Pty Ltd – the sole shareholder of the Ice Arena company – resigned as a director of the latter nine days before it was placed in liquidation, leaving Michael Brown as the sole director.

A creditors’ report into Ice Arena Adelaide Pty Ltd, released by I&R Advisory this week, says Mr Brown has “failed to provide any company records’’ despite repeated requests.

The report indicates the operations of the failed business have been transferred to a related entity “for no consideration” that “may also be considered an illegal phoenix’’.

“The company had a contract for services in respect to the ongoing management and operation of the Adelaide Ice Rink with IFF (The Ice Factor Foundation),’’ the report says.

The Ice Arena on James Congdon Drive at Thebarton. Picture: Emma Brasier

“The company incurred significant costs in respect to a fit out of the ice rink. It would appear that the business has now been transferred to a related entity, Agile Group (Global) Pty Limited, who has the benefit of the new fit out.

“In addition, the financial statements as provided by the ex-director (Mr Boyle) indicate that the company had significant other assets, including stock and debtors which would appear to have been assumed by the related entity for no consideration.’’

The report also says the former director, Mr Boyle, told the liquidator the company ceased trading on October 1 last year, “although a review of the company’s bank statements does not necessarily support this”.

“In addition, the ex-director advised that the business of the company is not being carried out by another company, although our investigations have revealed that this is not the case.’’

The liquidators report says Ice Arena Adelaide Pty Ltd had no money in the bank when it failed, and its major creditors were finance company Bizpay, owed $1.68m, the Australian Taxation Office, owed $433,051, and two related Agile companies, which are claiming a combined $891,022.

The Ice Arena on James Congdon Drive at Thebarton. Picture: Emma Brasier

National Hockey Super League claims it is owed $88,160 and Steele Building Group $232,981.

The liquidator said it had identified four potential offences committed by the director including trading while insolvent, and further investigations were being carried out.

The liquidator said it was unlikely creditors would recover any of their money.

Mr Boyle said in a statement to The Advertiser that current staff salary and superannuation payments, under the auspices of Agile Group, were up to date.

“The Agile Group has always and continues to fulfil its obligations and conduct itself properly and consistent with the legal requirements of any business or commercial entity.

“Staff salary and superannuation payments are up to date.

“If there was to be a superannuation shortfall, it would be covered by an ATO Superannuation Guarantee if ever required.

“Like many, if not all, leisure, hospitality and entertainment providers, the Ice Arena has at times struggled with cashflow and liquidity during the Covid-19 pandemic. It is now operating strongly with the lifting of Covid-19 restrictions. It is becoming more and more financially sound as the weeks go on.

“Questions for Michael Brown should be directed to him.’’