Action Smart Group liquidation: director loans, insolvent trading and business sale in spotlight
The debts of a collapsed national panel beating group have risen more than $18m, with the liquidator probing more than $20m in payments to two of the company’s bosses and the possibility it had traded while insolvent since 2023.
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The debts of a collapsed national panel beating group have risen more than $18m, with the liquidator probing more than $20m in payments to two of the company’s bosses and the possibility it had traded while insolvent since 2023.
Action Smart Group, which had workshops across Queensland, NSW, ACT, Victoria, and South Australia, crashed in April, with seven companies in liquidation and its hefty debts including a tax bill.
Almost a million dollars is owed to tradies and small businesses.
But despite the multimillion-dollar debts, the business entities have managed to keep driving with the same director behind the wheel.
The companies, all directed by Gold Coast man Adam Blackwell, 51, went into voluntary liquidation on April 2, appointing Steven Naidenov of Aston Chace.
A report by Mr Naidenov, lodged with corporate regulator ASIC, said creditors were unlikely to receive any of their money back.
The report said the group’s operations manager Adam Henningsen had potentially acted as a shadow director, having significant control over the now-collapsed companies and as a former director of multiple related companies.
Mr Henningsen and Mr Blackwell owed the company $16.8m between them, the report said, with both having “significantly depleted the Company’s available assets via the director loans account” after the panel beating businesses were sold.
Unrelated creditor claims of around $6.7m could have been covered if it wasn’t for the director loans, indicating “the director and Mr Henningsen may have been negligent in managing the Company’s funds”, the liquidator’s report said.
“Rather than receiving separate remuneration/structured payment for each of the companies, it seems that the director and Mr Henningsen took these significant drawings in addition to wages for all work performed for the related entities.”
The liquidator is also probing the sale of the group’s businesses and assets to a new company, ASG Hail, which is also directed by Mr Blackwell and continues to operate from its headquarters on the Gold Coast.
Mr Naidenov’s report said the $5.1m sale of the businesses settled on September 30, 2024, but the failing company continued to pay business expenses until April 1, 2025.
The sale proceeds themselves are also under investigation.
“A review of the Company’s bank statements indicated that at least $4.4m of the sale proceeds were transferred to the director and Mr Henningsen shortly after the funds were received by the Company, instead of being disbursed to meet the Company’s creditors/liabilities,” Mr Naidenov wrote.
Responding to multiple specific questions via email, Mr Blackwell said the group had been impacted by the weather and the pandemic.
“The director/s have run the company for over 16 years and in that time have taken negligible wages, worked well above normal hours and have contributed time and other resources to build and maintain the company,” he said.
“This is despite a lack of hail events and Covid, which have severely impacted cash flow.
“Directors have taken loans in lieu of wages and other contributions to the company.”
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Originally published as Action Smart Group liquidation: director loans, insolvent trading and business sale in spotlight
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