NDIS provider Cocoon SDA Care, aka Horizon SolSolutions, owes creditors $52m

The man behind Horizon SolSolutions and Cocoon SDA Care has revealed how much it owes people — and what’s in the pot to pay them. Use our search table to see the full list of creditors.

Exclusive: Incompetent and insolvent NDIS provider Cocoon owes hundreds of creditors more than $52 million, it can be revealed.

A document prepared by the sole director of the company behind Cocoon discloses debts of $7.7m to secured creditors including employees plus $44.4m due to unsecured creditors.

But the “realisable values” of its assets is estimated at just $13.3m, leaving a shortfall of $38.9m.

That’s bad news for the unsecured creditors, who may have just $5.6m split between them after secured creditors are repaid first.

It suggests a payout of less than 13 cents in every dollar owed to unsecured creditors.

The figures were prepared by Latif Muhammad, the sole director of Cocoon and its parent company, Horizon SolSolutions in an official document for liquidator David Mansfield of Deloitte.

Horizon’s Latif Muhammad speaks to reporter John Rolfe. Picture: Julian Andrews

Mr Mansfield is preparing his own numbers and it’s likely they will differ from Mr Muhammad.

Horizon plunged into liquidation about three weeks ago when it was banned from the NDIS for “serious misconduct” that included making claims for dead people and inmates.

Mr Mansfield first met with Mr Muhammad and Cocoon’s “corporate strategist” Zaffar Khan on May 8 to discuss the company’s affairs.

According to a document Mr Mansfield has filed with the corporate regulator, there were seven more discussions before he was appointed liquidator on May 28.

Deloitte and Mr Mansfield were not paid for any advice offered before being appointed and there is no suggestion of a conflict of interest.

The debt document prepared by Mr Muhammad also reveals Horizon has at least 250 creditors across Australia. These creditors are owed about $6.4m. It’s unclear how many creditors the company has for its entire debt of $52m.

The list of 250 creditors includes WorkCover Queensland, which is owed $425,000, and the Queensland Revenue Office, with a debt of $360,000. RevenueSA is owed $286,000 while Revenue NSW has a debt of $220,000. Victoria’s State Revenue Office is owed $214,000. And a debt of $278,000 to the Government of WA is declared.

Sydney’s Orion Innovation Homes is owed $486,000. It was contacted for comment.

It’s likely that the Australian Taxation Office is owed as much as $10m.

Cocoon co-founder Zaffar Khan. Picture: LinkedIn

According to the independent auditor’s report attached to Horizon’s 2023-24 financial statement, “the company owed $9,546,902 to the Australian Taxation Office and was issued with a bankruptcy notice. However, management successfully negotiated a payment plan approved by the ATO in November 2024, and the default judgment was set aside in October 2024.”

The statement said Horizon turned a profit of $790,000 in 2023-24, but still had negative equity of $14.2m due to accumulated losses in previous years. The auditor cast doubt on the accuracy of the bottom line in a blistering assessment of the way the company was being run.

She said multiple people had unauthorised access to its accounting software, “heightening the risk that errors or inappropriate changes could be made.”

Also, “certain expenses were recorded as revenue, potentially overstating reported financial performance,” she said.

Mr Muhammad was contacted for comment, as was Mr Mansfield.

Originally published as NDIS provider Cocoon SDA Care, aka Horizon SolSolutions, owes creditors $52m