Creditors to decide future of U and I Inclusions, following revelations company owes nearly $2m

A new report has detailed why a Moolap disability organisation appointed voluntary administrators.

U & I Inclusions has entered administration, with the company allegedly owing almost $2m to creditors. Picture: Brad Fleet

The future of a Moolap disability organisation, which owes nearly $2 million in liabilities, will be decided in the coming days after a report revealed that a significant reduction in participant numbers had drastically cut the company’s revenue.

U and I Inclusions was first registered in September 2019 and Australia Security and Investment Commission documents lists Michael Kenneady, Joanne Kenneady, Ilsa Slack and Deborah Marchello as the directors of the company.

Scott Anderson and Nathan Deppeler of Worrells were appointed administrators on June 12.

The company operated in the health care and social service sector, providing personalised disability services to 37 participants in the Geelong, Bellarine and Surf Coast area.

The company employed 29 workers and the employee base consisted of 13 permanent staff members and 16 employed on a casual basis.

According to a new report by Worrells, in the months leading up to their appointment, the company had a reduction in participants numbers, including the loss of a major participant, significantly reducing revenue.

The report states the directors formulated a strategy to address the sudden decline in revenue through various restructuring options, including attempting to increase participant numbers and reduce costs.

U & I Inclusions has entered administration, with the company allegedly owing almost $2m to creditors. Picture: Brad Fleet

While U and I Inclusions had taken steps to attempt to restructure the business it appeared it was ultimately unable to do so in the time available and was unlikely to make sufficient material change to avoid becoming insolvent.

Worrells determined U and I Inclusions was not viable to continue to trade as there were insufficient funds to meet the anticipated trading expenses.

As a result Worrells took steps to cease trading on June 13th.

A preliminary assessment revealed that the company was likely to have become insolvent at or around the time of Mr Anderson’s and Mr Deppeler’s appointment

According to the assessment, the company’s most significant asset is its property.

“It is unlikely that the company would have been able to continue trading at a profit and accordingly appears to have been or about to become cash flow insolvent,” the report states.

A meeting with creditors to decide the future of the company will take place on July 17.

Originally published as Creditors to decide future of U and I Inclusions, following revelations company owes nearly $2m