Cairns company Palm Branch Group enters liquidation with a $787,690 deficit
One of the companies led by the man behind a huge space centre project in Far North Queensland has gone into liquidation with close to $700,000 owed to creditors.
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One of the companies led by the man behind a huge space centre project in Far North Queensland has gone into liquidation with close to $700,000 owed to creditors.
Palm Branch Group – a consultancy company that operated in Cairns as its main business location, according to the Australian Business Register – was put into liquidation on December 18 by then director James Palmer, who is also the CEO of Space Centre Australia, a planned multi-use spaceport in Cape York.
Mr Palmer said there was no connection between Palm Branch Group and Space Centre Australia.
According to a report by liquidator Aaron Torline, Palm Branch Group owes $661,250 to creditors, including $380,000 to the Australian Taxation Office as an unsecured creditor.
According to Mr Palmer’s summary of Palm Branch Group’s assets and liabilities, filed with the Australian Securities and Investments Commission, the company had a total deficiency of $787,690, with no assets listed.
“I own a number of businesses … the responsible thing to do with (Palm Branch Group) was pull the pin and put it into liquidation,” Mr Palmer said.
“There have been a lot of follow-on effects from the Covid pandemic, the new federal government’s position on consulting and contractors … and that’s resulted in pretty much no work, and also things like the PwC tax scandal didn’t help because that put a knife into the consulting world.
“We can’t keep (Palm Branch Group) running if the work has dried up.
“The priority is to make sure all the staff entitlements and super (are) managed and maintained.”
Included in the $661,250 owed to creditors is $218,000 owed to three former employees as priority creditors.
“That will be resolved as part of the liquidation process,” Mr Palmer said.
Palm Branch Group provided consulting and project management services for government entities, including the Department of Defence, according to Mr Palmer.
When asked if the employees listed on the liquidator’s report just did work for Palm Branch Group, Mr Palmer responded: “Basically, yeah”.
In October, SCA entered into a contract for an 88ha land parcel located at Punsand Bay near Bamaga in Cape York, which Mr Palmer said would be settled “in a few weeks’ time”.
He said the liquidation of Palm Branch Group would not affect the Space Centre Australia project.
“Not at all. There’s no direct connection or issue or problems,” he said.
“SCA is pretty much becoming self-sustaining and financially looking after itself now anyway.
“There was never any connection to begin with, it’s just another business that we have.”
Mr Palmer said he was unable to provide any further comment on the matter as he was no longer the director of Palm Branch Group, and because the company was under administration.
Liquidator Aaron Torline was contacted for comment.
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