AWA went into receivership
AWA went into receivership today and not paying for warranty jobs for over 3 months
and no money to pay us the sh--t hit the fan as no money to pay staff
the administrators wont us to carry on doing the work and say they will pay us from today as looking for a buyer but not b4 they came in and no money for creditors b4 today
Teak say they did not no and have already pay them but AWA not pay us
so do i carry on doing jobs for them?
Last edited by CHRISS; 27-02-14 at 11:22 PM.
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AWA went into receivership
Not a good situation but I wouldn't do any further work if it were me, the receivers look after their own interests first and foremost and could end up paying creditors a few cents in the dollar
CHRISS (27-02-14)
If they need you ask to be paid up front as they are now a credit risk.
Depends what area you work in, are you a service agent or a direct employee?
If you are young enough and/or good at what you do, might be an opportunity to start with the new owners (if it sells)
I didn't even know AWA still existed ......
Geez the Receivership business is booming.
Very wishy washy report.... seems more to the story.
Seems more like a sale, restructure, name change about to happen...... they have some good clients
Business might get split up.... then dump the under preforming sector.
Last edited by ol' boy; 28-02-14 at 06:59 AM.
If u want to go on an expedition get a Land Rover, if u want to come home from an expedition get a Landcruiser!
The ABC report states that AWA have appointed an administrator, NOT that the company is in receivership. There is a difference.
A receiver is appointed by one or more secured creditor(s) or sometimes a court in order to recover as much of a secured debt as is possible. This usually involves selling some or all of the company's assets in order to repay the secured debt(s). It usually leads to the end of the company
An administrator, on the other hand, will attempt to keep the company trading while also assessing what is the underlying cause of the company's current inability to trade in a solvent manner.
It might be sustained bad management practice or a temporary setback which is the cause of AWA's current problem. In any case, the administrator will determine the cause and take steps appropriate in the circumstances, but with a view to putting the company back on track. It could be that with a few changes AWA will continue to trade its way out of its current difficulty. Time (and the administrator) will tell.
CHRISS should take all of this information into account when deciding on his best course of action in these circumstances.
ZDNet has a more useful report regarding the administration of AWA at .
The business law website at will explain more fully the difference between receivership, administration (and liquidation).
This is part of the letter i receved from them
We ask that you continue to respond to service calls in the usual fashion. The
Administrators undertake that all service calls which have been completed by you
following our appointment will be paid for.
If you have any money owing to you at the date of our appointment this will rank as an
unsecured claim against the Company. At this time we do not know whether there will be
sufficient funds to pay a dividend. All creditors will receive a circular explaining the
process of the Administration in more detail including their ability to participate in the first
and second creditors meetings.
Chriss
Sounds about normal, the next question is how much are you owed by AWA prior to the Administrator taking control?
You will no doubt be around last to be paid, the administers get all their money, then the legal team, the rest is scrapped over.
As mentioned, cents in the dollar.
Oh well, at least they are trying, which is better than a closed door, sorry we are insolvent.
Last edited by ol' boy; 28-02-14 at 01:12 PM.
My translation of the letter is.
As we have farked you over, please allow us to continue
farking you over.
If you tell them where to go, who in there right mind would put
there hand up to take over.
As oceanboy has stated the only winners from this will be
the Administrators.
The term 'Unsecured' says it all.
That they have offered in writing to continue paying you from the date they (administrator) took over is a bit of a lifesaver but for how long that lasts will be anybodies guess.
Just supposing the Business manages to Trade itself out of this situation and continues on, where would Chriss stand regarding monies owed to him from before the administrators took over irrespective of if he leaves or stays on?
One thing I would be checking on at once is to see if I had any payroll deductions being made for whatever have been paid by the company and if they havent been paid, when did they stop.
I stand unequivicably behind everything I say, I just dont ever remember saying it !!
If you have something better to do, do that 1st
If you have time on your hands do their work last
Good luck mate
I am sure this is not the 1st time AWA have been down this path if I remember right
When you do things right, people won't be sure that you have done anything at all
Like you best4less, I thought AWA had long gone the way of the Dodo along with Ferris Bros, Pye and STC.
All great Australian companies taken over and filed away only to have the 'Name' trotted out and attached to products made in Asia.
Just remembering it was the AWA tower that once was the tallest structure in Sydney advertising its business strength and product quality for the world to see.
Something else that was flogged off overseas because 'They could do it better'........
May Abbott should have added when he said 'Australia was Open for Business' that it is also 'Available for Sale to anyone with a Cheque Book'
Last edited by gordon_s1942; 28-02-14 at 02:30 PM.
I stand unequivicably behind everything I say
having worked for a company that went through similar I'll tell you how this panned out (doesn't mean the same would happen but anyway)Originally Posted by CHRISS
unsecured creditors are absolutely last priority, all unsecured creditors got nothing, in order of priority payments went to the administrators (at ridiculous rates), staff entitlements, secured creditors (creditors that hold insurance against debt etc), unsecured creditors, when all was said and done the administrators were paid in full, not all staff entitlements were paid, some creditors got a percentage (around 6c in the dollar), unsecured creditors got nothing
the guarantee to get paid from that point on was fine so anyone that did work 'for the administrators' got paid, it was short term though but the people that basically assisted the administrators from that point received no preference whatsoever regarding payments owing prior to administration so it was more a matter of did they need the work that was offered at the time
AWA had the contract for Teac Panasonic Sanyo and moor
as Panasonic pay us direct its ok
Teac were the main service we were doing and Teac had already paid AWA for the service and after a phone call to them told me they will be finding a new service network compony to do there work but will handle all parts now from Teac
so the wont be much left to sell
Chriss
Chriss, its sad to say most of these companies are really 'Ghosts' whose name is resurrected for a purpose and once thats done, it silently folds away until the next time.
My guess is they rented their current premises, leased all the furniture and equipment for the 'Business' to function until it had run its course and then close it down until the next time leaving just a few marks on the carpet and a pile of unopened letters at the door.
Nothing would surprise me less to see the name reappear at a later date rented out to someone else with no baggage attached from any previous users.
Unlike the USA when a company runs into difficulty they invoke something called a 'Chapter 11' which enables the company to cancel any pension plans and other allowances leaving the employee out in the street with stuff all just as whats happening to you now.
I stand unequivicably behind everything I say
thanks for letting us know chriss, just email the boss, don't know if he's heard yet
oh yeah, and exactly as B4L advised, and when your customers call be very apologetic, but if i cant get paid the works not going to get done.
Tell them to call their manufacturer for an update, oh and keep a list of their cust care numbers nearby.
We do ALOT of Panasonic stuff, looks like they may have to go back to doing they're own control and issuing parts
Last edited by iwacelect; 28-02-14 at 07:35 PM.
When I explained to the guy what avatar I wanted, that wasn't what I meant!
How bad do they need your companies services?
If you have a bargaining chip tell them if they want services honored and continued, you want your money owed before their appointment honored too, get them to shift you to the secured creditors list, they may be able to due to being unable to efficiently save the company without your services.
They will be in much deeper shit when irate customers start jumping up and down reporting them, it could shut them down sooner giving no hope of saving the company.
Might be worth a try, worst that could happen is they say no.
Well CHRISS, your position couldn't be clearer!
1/. You have an undertaking to be paid in full for any work undertaken by you following the appointment of the Administrator - they, the Administrators, will honor that undertaking. This is solely an agreement between you and the Administrators and has no connection with any previously-existing agreement between you and AWA.
2/. Payment for work conducted by you prior to the appointment of the Administrator is regarded as an unsecured debt, and as such, payment rests on the eventual fate of the AWA business. This is normal in such circumstances.
You have absolutely nothing to lose by continuing to provide service, as from now on, you are providing service to the Administrators, and as such you will be paid by them.
As an aside...if the majority of contractors withdraw their services, the task of the Administrator in "rescuing" the business, is made more difficult for fairly obvious reasons.
Just to clarify, isn't it the ATO, administrators, wages etc in that order
There is a fine line between "Hobby" and "Madness"
AWA went into receivership
You are probably correct, I'm sure the ATO never misses out no matter what in these circumstances
ol' boy (04-03-14)
The only time I could see the ATO not having first bite of the cherry would be if one or more of the Company Executives cleaned out the Bank accounts and did a Peter Allen by 'Flying off to Rio, Rio De Janeiro'
But as tristen points out that at present you have a 'contract' in writing between yourself and the Administrators regarding payment for work done from when they assumed control of the Business so that takes care of the near future at least.
Unfortunately whether you go or stay wont affect what is owed to you before that time as its now in limbo and could remain so for some considerable time.
I stand unequivicably behind everything I say
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