Fate of collapsed Colmont School decided

The Colmont School, which closed owing millions and leaving hundreds of students in limbo, has had its fate sealed.

The fate of the collapsed Colmont School has been sealed. Picture: Supplied

The fate of the collapsed Colmont School has been sealed, with creditors on Thursday voting for the troubled school to be liquidated.

Administrators Cor Cordis held a meeting with creditors, including parents and contractors owed thousands of dollars in fees, where they moved to proceed with the school’s permanent closure.

The vote to liquidate the former Kilmore International School has shut down offers from potential buyers to revive it, including businessman Ayub Khan who has previously been named as the primary party interested in investing in Colmont.

Administrators have begun auctioning off the school’s possessions, including sporting, music and office equipment, with items expected to remain on sale until mid December.

Investigations continue into whether Colmont’s board of directors kept the school open despite knowing its debts could not be paid.

Devastated students and parents from Colmont School. Picture: Ian Currie

It is understood administrators will probe the school’s recent transactions, with a report into the school’s finances revealing directors may have traded while insolvent for at least six months before its collapse in June.

It comes after an interim report into Colmont’s financial records showed a steep decline in revenue since 2018.

The sharpest drop was reported between 2020 and 2021 when annual income fell from $16m to $11m.

The school owes ‘priority creditors’, which includes former staff and Cor Cordis, more than $3.3m.

‘Unsecured creditors’ such as parents who paid up to $50,000 in advance fees for the 2023 school year are owed a further $2.5m.

The school announced its sudden closure in late July, just weeks after it changed its name to Colmont under an image overhaul, sending about 300 students to neighbouring schools such as Assumption College and Ivanhoe Grammar School.

Findings from the investigation are expected to be released in February next year.