Waratah debts hit $12m, little for creditors

Collapsed Waratah Group went down with debts topping $12m, and while debtors owe $4m to the company, secured creditors have a charge over $3.7m of that, leaving little for unsecured creditors.

Unsecured creditors are owed around $8.3m. Staff are owed $1.5m in unpaid superannuation, and a further $1m in unpaid entitlements, which they will now have to claim through the government's FEG scheme. Print21 understands some staff have not been paid their super in over a year.

The ATO is owed $1m. Earlier in the year the tax office initiated a winding up order against Waratah, which was rescinded when Waratah paid the $2m it owed in June, the $1m is another amount.

Paper merchants have again taken a huge hit – one is in for $1m, another for several hundred thousand dollars. They will be insured, but the latest claims will strain the insurers' capabiity and desire to underwrite, and will lead to further tighening of credit terms to printers.

Related parties have a claim to a further $500,000.

Of the $4m owed to Waratah, financier Scottish Pacific has a charge over approximately two thirds, $2.7m, and another secured creditor has a further $1m charge over it.