Wednesday, 26 May 2010

Auburn. Cumberland Industries court hearing

Dr Stephen Trealor, the former chief executive and director, of Cumberland Industries, which was based at Auburn and had facilities across Western Sydney, said in court that the organisation, which received $6 million a year in federal funds, to help employ 600 disabled people, should not be judged on the same measure of insolvency as other companies because it could ask the government for more help. Cumberland owed the bank $15.5 million and had been overstating its financial position by an estimated $2 million when it was placed into voluntary administration last May. It still owes unsecured creditors $4.5 million. Liquidator Peter Hedge, said Dr Treloar made the wrong decision in placing the company into administration and should have adopted a two-week recovery plan he had proposed. Jarrod White, for the liquidator, said Cumberland had not kept accurate records for at least two years. Dr Treloar told the court he now lectures in business law at the University of Notre Dame Proceedings ended yesterday



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