Cash-strapped Aussie businessman David Collard hits court snag over debt
Scale Facilitation founder David Collard has been dealt a blow during a Supreme Court hearing over failing to pay a debt worth more than $100,000.
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A cash-strapped Australian entrepreneur has failed in a bid to stop his Geelong-based business from being wound up.
David Collard’s Australian affiliate Sanitex Global failed to pay a $104,205.91 debt owed to Lake Social Enterprises.
Mr Collard claimed he would soon have the money to pay the debt and another that emerged from a former staff member who claimed $55,000 for six months unpaid wages.
But no evidence of the alleged funding that would save the Scale Facilitation company was produced.
Sanitex lawyer Kelvin Tay told the Supreme Court of Melbourne hearing on Wednesday it was Collard’s intention to pay the debts.
“It just needs a week or so to be able to receive funding from overseas … to be in a position to satisfy that debt,” Mr Tay said.
Asked by the Judicial Registrar Kim Woronczak why no evidence had been produced, Mr Tay said the money wouldn’t be available until the end of this week.
He said Mr Collard approached Mr Lake with a proposal to adjourn “to allow the funding to clear such that he can be in a position to clear the debt.”
He revealed Mr Collard was still in New York. “The director of my client resides in New York and that’s complicated things with the timing of matters,” Mr Tay said.
“It would be reasonable to allow a short adjournment in order to discharge the debt to avoid operations of my client in Australia being wound up particularly when it has a few employees in its employ as well.”
Leo Freckelton, representing Lake Social Enterprises, said Sanitex has already had “ample opportunity” given there had already been an adjournment for a month.
He revealed other creditors were circling.
“There have been voluminous attempts made to contact my instructors from other supporting creditors who have who are not yet on the record. So to the extent that one debt is paid out, it’s very likely that there will be someone sending into prosecute this application in place of my client,” Mr Freckelton said.
Judicial Registrar Woronczak said she was satisfied a winding up application was in order and Scott Andersen appointed for the purposes of the winding up.
Mr Andersen said he was unable to comment as he was waiting to see the court order.
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