Financier sends QFM into liquidation over unpaid bill

Queensland Freight Management closes its doors after financial firm seeks court order to liquidate it

Financier sends QFM into liquidation over unpaid bill
Financier sends QFM into liquidation
By Brad Gardner| March 11, 2010

Queensland Freight Management has closed its doors after failing to pay back more than $200,000 to a global financial firm.

Zurich Financial Services gained a court order to send the Gold Coast-based carrier into liquidation last month.

Alan Topp from Insolvency Resolution, the firm appointed to liquidate QFM, says the insurer overpaid a claim by $250,000 and then tried to get the money back.

He says the operator—known for its flashy vehicles covered in bright lights—did not have the money, prompting Zurich to seek the court order.

"It is due to overpayment of an insurance matter...the amount wasn't paid," Topp, who was appointed on March 2, says.

"The directors closed the business early February."

Topp says the company has already handed back assets to financiers, while the insolvency firm has only begun combing business records.

He says it is too early to tell if other factors led to QFM’s demise.

ATN has contacted Zurich for comment.

"The issue is it is very early days," Topp says.

Employees were progressively laid off, but Topp says they have been looked after.

"As I understand it all employees have been paid entitlements except superannuation," he says.

QFM trucks and trailers are already being listed for sale.

Attempts were made to contact QFM, but all phones have been disconnected.

The operator was targeted by the Roads and Traffic Authority (RTA) in 2008 for persistent overloading offences.

The department took it to court and gained an order forcing QFM to install expensive load monitoring systems after it pleaded guilty to 16 breaches under NSW chain of responsibility law.

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