Gold Coast traffic equipment company Global Traffic Equipment in liquidation owing $3.7m-plus

The boss of a Gold Coast manufacturing and equipment hire company, in liquidation owing more than $3.7m, says he is in “a delicate position” as he faces tax office court action and security claims against his luxury home.

The boss of a Gold Coast manufacturing and equipment hire company, in liquidation owing more than $3.7m, says he is in “a delicate position” as he faces tax office court action and security claims against his luxury home.

Larry Christensen’s Global Traffic Equipment went into liquidation on December 10 leaving 28 staff out of jobs and out of pocket.

The company was wound up by software supplier Circuit Lab, which took it to court over a $42,000 debt.

A report from liquidator David Hambleton of Rodgers Reidy said Global Traffic owed $1.95m to 51 unsecured creditors as well as $1.78m to secured creditors.

Major unsecured creditors named include landlord Norman Jenkin Properties, owed $265,029, and the tax office, which is owed more than $860,000.

Almost $200,000 is owed in unpaid wages and superannuation to 28 former employees.

The company provided traffic safety equipment like portable traffic lights, lighting towers, LED billboards, arrow boards and solar cameras.

Products advertised on the company’s website.

Mr Christensen, 73, is sole director of the company, and holds equal shareholding with wife Dianne, 74, who is company secretary.

He did not want to talk about the matter this week.

“It’s in a delicate position,” he said.

“I don’t want to cause myself any more pain and suffering but come back and ask me in a month’s time, I’ll have different answers for you.”

The Christensen’s luxury five-bedroom home on the exclusive Sovereign Islands, held in Ms Christensen’s name, has been advertised for sale since August for offers above $3.5m.

It last sold for $2.2m in 2017, and big bank NAB holds a first preference mortgage over it.

The property also has two caveats against it – from lender Bizcap and turnaround consultants Regroup Solutions.

NAB and Bizcap are also secured creditors of Global Traffic.

Larry and Dianne Christensen's home at the Sovereign Islands.

The liquidation and claims on his home are not Mr Christensen’s only problems – he’s being sued by the ATO in the Brisbane District Court.

He is yet to file a defence in the matter, and details of the case are not yet publicly available.

Mr Christensen said he had no knowledge of the matter.

Mr Hambleton’s liquidator report, filed with ASIC, said Global Traffic was owed $703,890 by “three related parties” and that Mr Christensen had indicated the money would not be repaid.

The report said there appeared to have been “unreasonable director-related transactions”.

Mr Christensen declined to comment on the transactions.

The businessman is also sole director of LDC Earthmoving and ETC Hire, which operate from the same Arundel address as his collapsed company.

Those companies are owed almost $650,000 in the liquidation.

ETC also provides traffic safety equipment including portable traffic lights, lighting towers, LED billboards, arrow boards and solar cameras.

Mr Christensen said his other companies were solvent and that he had no plans to declare bankruptcy.

Ex staff have been advised to make a claim for their entitlements under the Federal Government’s Fair Entitlements Guarantee, while unpaid superannuation can be pursued via the ATO.

A creditor meeting is scheduled at Rodgers Reidy Brisbane at 11am osn January 24.

Originally published as Gold Coast traffic equipment company Global Traffic Equipment in liquidation owing $3.7m-plus