Bundaberg Farming collapses with $16m owing to staff, creditors
A farming company in operation for almost 50 years has gone into liquidation while owing $16 million to creditors, in the latest financial scandal to hit the Bundaberg-based empire.
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A Bundaberg farming company has gone into liquidation while owing $16 million to creditors, in the latest financial scandal to hit the farming empire.
The New South Wales Supreme Court issued a winding up order and appointed a liquidator for Bundaberg Farming Co Pty Ltd on March 6, 2024.
Roberto Barbera, a member of the colourful Barbera family who has grown zucchinis, capsicums and tomatoes in the region for almost 50 years, was listed as director of the company which was incorporated in August 2021.
In his report sent to creditors on April 5, the liquidator, Glenn Livingstone for WLP Restructuring, noted he had not received a full report of the company’s assets and liabilities as required by legislation, and Mr Barbera, 51, had not been responsive to his requests for information.
Mr Livingston said he understood Bundaberg Farming had operated as a fruit and vegetable farm, but he had since been informed that the business was not operational.
Through accessing the company’s accounts on an online accounting platform, Mr Livingstone found it had not maintained full financial records since it was incorporated, with poor financial control listed as one of the reasons for the company’s failure.
In his analysis of the records available to him, Mr Livingston found Bundaberg Farming had $16 million in liabilities, including $12 million owed to unsecured creditors, the majority of which ($8.5 million) was owed to people linked to the director and the company’s shareholders.
Another $1.6 million was owed to secured creditors, including Nova Supply Chain Finance ($1.5 million) and Opal Packaging Australia Pty Ltd ($107,962), the latter of which made the Supreme Court complaint that triggered the liquidation order.
The company also owed $1.5 million in unpaid wages and overdue superannuation to 215 employees.
Mr Livingston said he had been advised that some of these employees had been transferred to another family company, Barbera IT, around the date of his appointment as liquidator, raising concerns that the company had transferred its liabilities to another company in a practice known as “phoenix activity”.
“Based on the information available to me ... I am concerned that the potential transfer of employees (and potential assets) to Barbera IT might constitute phoenix activity or an effort to circumvent creditor claims,” Mr Livingston said.
He also said his investigations suggested the company could have been trading while insolvent, which is an offence under the federal Corporations Act.
Bundaberg Farming’s liabilities are balanced by $3.4 million in assets, the majority of which includes $2.7 million in loans made to Barbera IT, M & R Farms Pty Ltd and Bundy Contractors Pty Ltd.
A bank account in the name of Bundaberg Farming Pty Ltd has a balance of $14.87, and Mr Livingston identified $38,030 in assets in the form of farming equipment from which he did not expect to recover any value.
Mr Livingston invited any unidentified creditors for Bundaberg Farming to submit a proof of debt form as a claim for funds recovered through the liquidation.
Roberto Barbera is related to Giatano ‘Guy’ Barbera.
Barbera Family Holdings is not related in any way to Bundaberg Farming Co Pty Ltd.
In 2021 the Australian Securities and Investments Commission disqualified Guy Barbera from managing corporations for five years, due to his mismanagement of nine companies which owed unsecured creditors $53.1 million in debt including unpaid superannuation.
ASIC found that Mr Barbera had allowed one of his companies, Barbera Transport, to trade while insolvent, and had failed to ensure that his companies kept proper financial records.
Roberto Barbera has been contacted for comment.
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