Another timber 'theft' story. The joys of business......

Mal at Boutique Timbers got an order to supply 2 cubic metres of select grade wide Tas blackwood for a NSW Government Department through a company in Botany. Sounded OK. Govt. Dept orders are good and payment is normally not a problem.

He arranged, paid for and shipped to timber to Sydney.
It ended up at Wetherill Park at another major Sydney timber company.

The Botany Company has now gone bust and is in liquidation.

The major timber company at Wetherill Park says they had orders to ship the timber to another timber company in Melbourne, this after liquidation occurred but no-one in Melbourne knows where it has gone, and in any event, it is owned by the bust Botany company (and now the liquidators) as the order was placed before the Botany company went broke.

This all a little sad in any event.

If anyone hears of any cheap, select wide blackwood offered in Sydney or Melbourne, a pm would be appreciated

Thanks

Greg

The pleasures of doing business. Hope you find your timber but in the meantime, I'll keep an ear out.

That absolutely stinks!!!:~:~:~

I wonder if someone was in the know?

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Originally Posted by Greg Ward

Mal at Boutique Timbers got an order to supply 2 cubic metres of select grade wide Tas blackwood for a NSW Government Department through a company in Botany. Sounded OK. Govt. Dept orders are good and payment is normally not a problem.

He arranged, paid for and shipped to timber to Sydney.
It ended up at Wetherill Park at another major Sydney timber company.

The Botany Company has now gone bust and is in liquidation.

The major timber company at Wetherill Park says they had orders to ship the timber to another timber company in Melbourne, this after liquidation occurred but no-one in Melbourne knows where it has gone, and in any event, it is owned by the bust Botany company (and now the liquidators) as the order was placed before the Botany company went broke.

This all a little sad in any event.

If anyone hears of any cheap, select wide blackwood offered in Sydney or Melbourne, a pm would be appreciated

Thanks

Greg

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That's not good at all Greg..takes a lot of good logs to saw up 2 m3,particularly select grade Blackwood..fair dinkum stinks i reckon :rippedhand:

Sorry to hear that Greg. I fair dinkum cannot work out for the life of me why, in this sort of situation, the person/s who haven't been paid can't just pick up the goods. It'll end up at an auction somewhere, sold for a song. They could reduce the debt by the full amount, the creditor gets his full amount back (minus additional freight, but hey...).

That has to be, what, $4-5k of timber and delivery?

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Originally Posted by FenceFurniture

Sorry to hear that Greg. I fair dinkum cannot work out for the life of me why, in this sort of situation, the person/s who haven't been paid can't just pick up the goods. It'll end up at an auction somewhere, sold for a song. They could reduce the debt by the full amount, the creditor gets his full amount back (minus additional freight, but hey...).

That has to be, what, $4-5k of timber and delivery?

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The laws of insolvency do make sense when you accept that they are not for the benefit of unsecured creditors for they are the second last on the totem pole. Primarily they favour first the tax debts, then the employees, then the secured creditors and then the unsecured creditors and finally the original owners.

AS a famous Victorian insolvency expert/ Liquidator once said to me : Unsecured creditors don't deserve any payment for if they had brains they wouldn't be in that position. He always suggested that goods should be sent on consignment so ownership remained with the supplier until paid in full.

In this case there seems to be something fishy about the goods being transferred, maybe Mal or the police should investigate possible fraud and lay charges.

Peter.

Yeah, I kinda see your point Peter, but all that does is essentially transfer the last goods delivered to those who are deemed to be the most important (ATO and secured creditors) for whom the loss of money is not nearly so painful as the little guy (not sure how tall Mal is).

The value of this timber in the whole liquidated estate would be a pittance, and especially when you look at the total amount of the bankruptcy. It's not common sense, and on more occasions than we know about it causes a domino effect of more insolvencies for the little guys who get caught up in it - and that sucks!

Greg with all the sale site around it would be hard to follow them all you've done the right thing and I'd like to see someone held responsible, sound sus from the Sydney end for starters. The more that know the hard maybe to get rid of it.

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Originally Posted by FenceFurniture

It's not common sense,........................... and that sucks!

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I know but when do most laws make sense as they are made by politicians.


BTW I once worked for a company that went into receivership and subsequent liquidation. Some may know it, it was the Swagman Restaurant in FTGully.

I worked with the owners to take the company out of receivership with a buyout that would have paid all the creditors 100 c in the dollar over a few years. This was supported by all the major creditors but refused bt the Receiver.

So it was suggested we apply to the Supreme Court for a meeting of all creditors to consider the proposal.

It ended up with 10 days hearing in the Practice Court, with 5 QC's representing various interests at a cost of $ 100 K to be paid by the liquidator as the court placed it in liquidation.

At the creditors hearing called by the Liquidator the buy out was finally approved, but the receiver remained with the liquidator behind him and overseeing him.

All this shemozzle meant that the unsecured creditors got 23 c in the $ after all these extra costs were paid.

All according to the law but no common sense and it sucks as well.


Peter.

But I bet all the lawyers and other blood sucker got there full fees.
Regards

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Originally Posted by A Duke

But I bet all the lawyers and other blood sucker got there full fees.
Regards

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They sure did, as the judge ordered the liquidation to pay all the fees and costs in the matter, even the applicants.


Peter.

On a side note is the rest of the liquidation currently on Grays as listed in another thread??

Greg,
Unfortunately, this is a common practice within industry as companies go down the tube. Sounds very much like an inside job and you need to act quickly if you are going to get any sort of satisfaction. During my time in timber wholesale, I have seen this happen on several occasions. What needs to be determined is the relationship between the companies where the timber has been resent. This relationship may not be easy to find and would require good company knowledge to find the link.
At this stage, if the material has not been paid for, it still belongs to the sender. The only variance to this would be by way of written order contract against payment terms extending credit to the purchaser and stipulating FOB or FIN etc.
Feel free to PM me if you think I can be of assistance.

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Originally Posted by rustynail

At this stage, if the material has not been paid for, it still belongs to the sender. The only variance to this would be by way of written order contract against payment terms extending credit to the purchaser and stipulating FOB or FIN etc.

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That is only legally enforcable if the senders' invoice has a Romalpa clause on it.

NetLaw - Civil Law

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Originally Posted by Big Shed

That is only legally enforcable if the senders' invoice has a Romalpa clause on it.

NetLaw - Civil Law

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Hahdy bit of info there Fred..:2tsup: