Directional drilling company Arogen has been placed into administration with debts totalling almost $4.5million, a meeting of creditors was told yesterday.
The Kurri Kurri based company owes more than 100 creditors $4.409million, including the Australian Taxation Office which claims to be owed $990,000, Newcastle Herald reports.
Administrator Paul Gidley from insolvency firm Shaw Gidley told the meeting that the company had realiseable assets of almost $3.8million.
Gidley said the return of creditors’ money was almost entirely dependent upon a multimillion-dollar payment currently in dispute between the company and development giant Leightons.
In October last year, an adjudicator ruled that Leightons pay Arogen $5.7million following a dispute over a Sydney project.
But uncertainty clouds the payment as Leightons is currently challenging the judgment.
Arogen’s sole director Roslyn O’Meley was in attendance yesterday and told creditors: ‘‘I’m here because I want to see that all our creditors are paid in full’’.
A number of creditors expressed concern that a family dispute was the reason behind Arogen being put into administration.
O’Meley’s son Tony has argued against Gidley’s appointment, saying that his mother had no legal right to place the company into administration.
He told the meeting that more than half of the company’s total debt was owed to companies or individuals linked to the O’Meley family.
That matter will be heard in the Supreme Court next week.