The provisional liquidator appointed to media and events company Consolidated Business Media is likely to launch a $1.3 million claim for monies former managing director John Webb and his associated businesses borrowed from CBM.
The provisional liquidator appointed to media and events company Consolidated Business Media is likely to launch a $1.3 million claim for monies former managing director John Webb and his associated businesses borrowed from CBM.
Mr Webb called in provisional liquidator Gary Anderson earlier this month amid mounting debts.
CBM also faces claims from several other creditors. The Australian Tax Office is seeking $1.2 million from Mr Webb, while CBM’s secured creditor, BankWest, is owed $700,000.
A court hearing to wind-up the company has been scheduled for August 2 and Mr Anderson said CBM would more than likely be placed into liquidation.
Mr Anderson said the ATO debt was for unpaid superannuation.
Mr Webb told WA Business News his loans amounted to only $622,000 of monies owed to CBM, and that he was responsible for repayment of $300,000 of that. The remaining amount, about $700,000, was loaned to companies with which he was associated, Mr Webb said.
“I didn’t use that money [the $700,000]; the companies used it,” he said.
Mr Webb said he took out a $300,000 loan before a ruling by the Australian Securities and Investments Commission that required the creation of loan accounts for directors.
“I’m not required to pay that back,” he said. “Prior to that [ruling], you could take the money out and use it for whatever you liked.”
Last month, CBM’s assets were sold to Media & Events Australia, a company formerly directed by Mr Webb but now directed by former CBM general manager Gregory Millar.
Mr Webb was a director of Media & Events Australia until June 1 this year.
Mr Millar was appointed sole director of Media & Events Australia on June 1. About a fortnight later Mr Anderson was appointed to CBM.
The latest Australian Investment and Securities Commission records show a company of which Mr Webb is sole director and shareholder, Consolidated Access Pty Ltd, is the ultimate holding company to Media & Events Australia.
Mr Webb has claimed this to be a mistake made by ASIC.
Mr Anderson is investigating the sale of the CBM assets.
“In the event that the sale of assets were not proper or the transaction was undervalued, the recovery of any money will go to secured creditors first,” Mr Anderson said.
He said he would also seek repayment from Mr Webb and his associated entities of $1.3 million in CBM loans.
The debt recovery could include selling assets currently held in the name of Mr Webb’s wife, Denise.
“If it is put into liquidation I will have a claim against Mr Webb and the associated entities,” he said.
“There is a block in City Beach in his wife’s name. I may potentially have a claim against his wife if it’s proven that the asset has been acquired from those monies.
“If I can trace the borrowing of money by John Webb to the block of land then I would have an issue with Mrs Webb.”
