A third and final creditors meeting for Clear Skies Corp. (related to Skope Group & entities) signage, cladding & fitout business, in liquidation has been called via online MS Teams meeting for December 5th. Readers may remember the saga from 2019 on, with administration, a DOCA that was contested, then defaulted upon and finally liquidation of all Skope Group companies.
Skope Group's former HQ at Castle Hill, NSW
Company insolvencies can drag on for many years - the longest being the liquidation of Alan Bond's Bell Group which ended in 2020 after nearly 30 years. Legal fees alone, mostly for the WA Government, amounted to $300 million. A group of prominent banks who had propped up Bell collared $385 million from sale of assets but some creditors weren't happy as they blamed the banks for causing the collapse. It took until 2013 for the banks to agree to fund a pool of $1.75 billion to distribute to creditors, the main two being the WA Government and the ATO. WA Inc. was finally dead.
Timeline & links:
We first reported on difficulties with Clear Skies/Skope Group in August 2019.
On August 21st 2019 we reported that debts had blown out to $2.3 million and that PKF was concerned the company had traded while insolvent and that 'related party' companies needed investigation.
On August 28th, we reported at a 2nd meeting of creditors, a proposed DOCA was approved, supported by the ATO (owed $800,000), because it promised 30 cents in the dollar. Also, a claimed 22 jobs were 'saved.'
On September 19th 2019, we published the results of a survey where industry players expressed 'disgust and outrage' that the DOCA should be operating, that director Charles Orren had re-purchased Clear Skies Corp. for $100,00, wiped off debt and effetively 'phoenixed' the company. A monthly payment plan was started under PKF's administration.
On November 21st 2019, a winding-up order on Clear Skies was commenced by DI Signs of Melbourne for unpaid debts and a hearing set down for December 3rd. On 28th November, Clear Skies announced the order was set aside (presumably settled.)
By March 2020, Clear Skies went back into administration, under Cor Cordis, called in by Scottish Pacific Finance.
On March 13th 2020 it was revealed that Clear Skies had defaulted on a $22,000 monthly repayment, and that PKF condered that they were in contravention of the DOCA.
By March 24th 2020, it was clear that Clear Skies was unable to comply to the terms of the DOCA, and that liquidation was inevitable.
Liquidation of Skope Group was completed in September 2023.
Skope director Ann Orren unfortunately entered bankruptcy in May 2023
Now, in December 2024, PKF's Simon Thorn is calling time at the 3rd Clear Skies creditors' meeting and has provided a detailed report on monies recovered, litigation undertaken and a final account for his fees of around $144,000. Unless crediors vote for the winding up, there are no funds to pay his costs.
Risk finance for the litigations and claw-back of funds was underwritted by Clover Risk Holdings Pty Ltd, who has offered further finance to fund legal action for 'breach of director’s duties' should they arise. ASIC has received a confidential report.
What do do if you are a creditor
If you think you are a creditor of CLEAR SKIES CORP PTY LTD, FORMERLY TRADING AS
“SKOPE GROUP SERVICES MANUFACTURING”; “SCREAM VISUAL WHOLESALE MANUFACTURING” & “FM ENGINEERING & WHOLESALE SIGN MANUFACTURING”
(IN LIQUIDATION) - ACN: 153 519 736, and wish to attend and vote at the December 5th meeting, proof of claim must be received by sending to George Talevski on gtalevski@pkf.com.au by no later than: 5pm on Wednesday, 4th December 2024.
PKF's George Talevski can also supply appropriate claim forms.
Simon Thorn is based at PKF's Newcastle office.
