The shell of the IT services company formerly known as S Central is set to enter liquidation, with a court hearing scheduled in the NSW Supreme Court on February 22.
S Central's founder Peter Mavridis told CRN today that the court date will be the first step in an effort to ensure former S Central staff are paid entitlements under the Government-funded GEERS scheme (The General Employee Entitlements and Redundancy Scheme).
Under GEERS, the Federal Government pitches in to provide financial assistance to staff "who have lost their employment due to the liquidation or bankruptcy of their employer and who are owed certain employee entitlements."
Mavridis said it would fall upon the liquidator to "work out everybody's entitlements".
In the very least, he expects the appointment to provide peace of mind for staff, as under liquidation their entitlements will be recognised by GEERS.
"Under the GEERS scheme, a liquidator has to be appointed to an entity before staff are able to claim anything," he said.
Mavridis said he was yet to receive a final report from Deloitte corporate reorganisation partner Tim Norman, who had previously been appointed to manage the book debts of the former S Central.
Mavridis was unsure of whether Deloitte had managed to collect enough debts owing to the former S Central to pay creditors, due to the interruption of the Christmas and New Year holiday period.
Calls to Deloitte have not been returned.
Chase Mavridis
Former S Central staff have told CRN they have received no information from Mavridis or Deloitte since the company was sold.
One former staffer, owed over a month of back pay, three months worth of superannuation contributions, several weeks of unpaid leave entitlements and forced redundancy payments, was not confident the company was being wound up in such a way that the Government would come to the rescue of staff.
He said it was vital that the ASIC (Australian Securities and Investment Commission), the Fair Work Ombudsman, the Tax Office and creditors continue to scrutinse the process.
Another former S Central staffer, owed close to a month's leave, several weeks pay and pay in lieu of forced resignation, said it had become clear that Deloitte was only interested in protecting the interests of its client, the National Australia Bank, to the detriment of other creditors such as staff.
"Deloitte is not acting in the interests of staff, they are purely there to collect book debts owed to S Central," said another former staff member. "The NAB has put them in there to get as much money as possible for the NAB to repay the S Central credit facility. That is all they care about."
A group of disgruntled associates has also set up a website entitled "Chase Mavridis" to track down Mavridis' activities post the sale of S Central to Brennan IT.
Mavridis told CRN that the sale of S Central's assets to Brennan IT was completed December 23. His employment with Brennan IT, under which he was charged with assisting in the transition process, ended the following day.
Mavridis said he is now working on consulting projects in areas outside of the technology industry, but he expects to be involved in some IT projects at a latter stage.
Issue: 277 | March, 2010