Business · Companies · 6 hrs ago
Liquidators investigate Mundella assets sale and more than $2 million in transactions
Mundella Foods and associated companies collapsed into liquidation in Western Australia after a failed financial rescue plan.
Liquidators are examining more than $2 million in transactions linked to former director Hayden Russell and whether the companies traded while insolvent.
They have not made final findings, and Russell denies wrongdoing, saying he acted in good faith and used cash withdrawals for business costs and wages.
Liquidators are also investigating whether the sale of Mundella and Margaret River Dairy Company assets to Artisanal Market was an uncommercial deal.
The sale brought payments to secured lenders, but it will not provide money for other creditors.
Creditors are owed $12.5 million, including almost $940,000 in unpaid worker wages, superannuation and entitlements.
Further investigation depends on creditors providing more funding, and liquidators say a payment to any creditor group is unlikely.
Liquidators are investigating more than $2 million in transactions linked to the collapse of Western Australian dairy company Mundella Foods and associated companies.
They are also examining whether the sale of Mundella and Margaret River Dairy Company assets to Artisanal Market was an uncommercial deal.
Former director Hayden Russell denied making improper transactions and said he used cash withdrawals for business operations and workers’ wages.
Creditors are owed $12.5 million, and liquidators said there was unlikely to be a dividend for any class of creditor.
The liquidators’ report said its findings were not final and further investigations would need additional funding.
- Who
- Liquidators at Mackay Goodwin are investigating transactions involving Mundella Foods and associated companies. Former director Hayden Russell denies improper transactions.
- What
- Liquidators are examining more than $2 million in potentially unreasonable director-related and insolvent trading transactions, as well as the sale of company assets.
- When
- The report said Mundella may have traded while insolvent from July 1, 2024. The asset sale was agreed on July 17, and the companies entered liquidation in August.
- Where
- Western Australia.
- Why
- Liquidators are investigating whether transactions were unreasonable and whether the asset sale was uncommercial.
Mackay Goodwin liquidators
Hayden Russell
Transactions
Mackay Goodwin liquidators
The liquidators identified $778,000 in potentially unreasonable director-related transactions and said further investigation was needed.
Hayden Russell
Russell denied making unreasonable transactions and said he acted in good faith.
Cash withdrawals
Mackay Goodwin liquidators
The liquidators said they needed to determine whether frequent cash withdrawals were used for company operations or were unreasonable.
Hayden Russell
Russell said he used the withdrawals to pay for operations and workers’ wages.
Liquidators said Mundella may have begun trading while insolvent.
The sale of Mundella and Margaret River Dairy Company assets was agreed.
The companies entered liquidation after a financial rescue plan failed.
Bowral Capital and Bizcap received proceeds from the final sale of the companies’ property and assets.
- Potentially unreasonable director-related transactions
- $778,000
- Potential insolvent trading transactions
- $1.3 million
- Total owed to creditors
- $12.5 million
- Unpaid worker entitlements
- Almost $940,000
- Proceeds paid to Bowral Capital
- $5.85 million
What people are saying
I literally have nothing now, because I put every single penny I had into there to try keep it afloat
At this stage of the Liquidation, it is unlikely that there will be a dividend to any class of creditors