A recent report from McGrathNicol suggests Scott’s could’ve been financially insolvent long before collapsing in late February
In the Australian Financial Review (AFR) this week, the administrators of the collapsed Scott’s Refrigerated Logistics, McGrathNicol, says the former logistics giant could have been trading while insolvent for up to nine months before its collapse recently.
McGrathNicol registered a report with the corporate regulator recently where it says Scott’s may have been insolvent on a cash flow basis for up to nine months before it officially went into administration in late February.
Although McGrathNicol says it could’ve been as late as one week before the collapse, it did say that Scott’s was potentially insolvent as far back as May 2022.
RELATED ARTICLE: TWU reacts after second transport company collapses this year
“Further investigations by an appointed liquidator will consider the headroom in available lending facilities provided by ScotPac and ACP, and the extent to any formal agreements with creditors to extend trading terms, with the aim of establishing more precisely the date that the Scott’s Group became insolvent,” the report says.
The AFR also provided an update on attempts to sell Scott’s, saying KordaMentha attempted to sell it but have instead moved to wind it down and sell assets after negotiations failed.