The meeting was told an investigation was ongoing into whether the business had traded while insolvent – meaning the business continued operating despite being unable to pay its debts. If proven, Kellock could be personally liable for some of the unpaid debts.
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“[Which means] the parties could pursue them [the directors], and if they can’t pay, they could potentially be made bankrupt,” Gammel said.
The company owes at least $391,000 to employees and a total of more than $2.9 million to unsecured creditors. About $382,000 of that is debt from related-party loans.
Gammel confirmed that employees would only be paid after BizCap – a secured creditor that had loaned money to the business.
“We’re working on trying to get some…