One of the worst things about this is that the employees don't...

One of the worst things about this is that the employees don't receive all that's due to them.

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Creditors of collapsed contractor Forge Group have voted unanimously to wind up the company, at a creditors meeting attended by about 140 people in Perth.

At today’s second meeting of creditors, most of whom are unsecured, administrator Ferrier Hodgson saw its recommendation adopted to put the 11 Forge companies in question into liquidation.

There was a sense of frustration among employees at the meeting, given the 1600 staff eligible for entitlements need to go through a government scheme for their claims. The employees are collectively owed $15.5m.

Forge went into administration in February with about $500 million in debts. Aside from employees, Forge’s creditors include sub-contractors, service providers and financiers. The ANZ Bank is top of the list with a book-value claim of $289m.

There was no further clarity on how many cents in the dollar creditors can hope to recover.

Ferrier Hodgson will continue its enquiry into the conduct of Forge’s directors as it draws up a report for ASIC.

In a report released last week, Ferriers said Forge may have been trading while insolvent since November but the viability of a claim against its directors remains to be seen.

The report also revealed the full extent of Forge’s financial strife, with its net loss for the seven months to January at $326.4 million. Net profit for the year to June 30 was $62.9m.

Meanwhile, receivers KordaMentha are trying to recover what assets they can from the collapsed Forge Group.

http://www.theaustralian.com.au/business/latest/forge-put-into-liquidation/story-e6frg90f-1226858394103