HTQ Civil Pipe Mining ended up in liquidation because of directors’ ‘irreconcilable differences’

A CIVIL construction business based in Toowoomba and which worked on various mining and construction projects around the state was placed in liquidation because of “irreconcilable differences” between the two directors.

Hotshot Transport Queensland, trading as HTQ Civil Pipe Mining, was incorporated on April 4, 2014, and run by directors Clint Kenny and Reuben Dolphin.

The two directors voted to place the company into a members voluntary administration on June 30, on the basis the company had enough money and assets to pay out its creditors.

But according to advice to creditors by liquidator Adam Ward of Worrells Solvency and Forensic Accountants, the transfer of $190,470 from the company’s bank account, a dispute over the ownership of a $175,000 Caterpillar scraper, assets being recorded at higher values than market value and other assets being owned by a related company all meant the company was actually insolvent.

Accordingly, the liquidation became a creditors’ voluntary liquidation following a meeting of creditors on September 30.

There is no suggestion directors deliberately misled creditors.

In his most recent report to creditors dated October 14, liquidator Adam Ward of Worrells Solvency and Forensic Accountants said the company had $458,531 in assets and $1,043,352 in total liabilities.

Of the funds transferred from the company’s bank account prior to liquidation by Mr Dolphin, Mr Ward said he had received notice Mr Dolphin had “transferred $170,892.17 into Murdoch Lawyers trust account”.

“I await confirmation that these funds are available to the company for use in the liquidation,” he wrote.

“Mr Dolphin has stated that he has paid company expenses resulting in the return of company funds being less than the amount Mr Dolphin removed from the company bank accounts. I am yet to receive evidence of such expenditure.”

Meanwhile, Mr Ward said one of the directors of the company had sought court orders regarding the ownership of the Caterpillar scraper to determine whether it is an asset of the company or an asset owned by Kenny Earthmoving (QLD) Pty Ltd.

Mr Ward said he was declaring a first and final priority dividend in the liquidation, which is expected to pay all employee entitlements in full.

Employees are encouraged to lodge their proof of debt form with Worrells to participate in the dividend, if they have not done so already.

A statutory report to creditors on the state of the liquidation will be issued to creditors before December 30.