A Sydney-based security group that was the subject of an Independent Commission against Corruption (ICAC) hearing in 2012 has collapsed after the Australian Tax office initiated a wind-up application against the group.
Kings Security Group, whose former clients are reported to have included the Art Gallery of NSW, the former North Sydney Central Coast Area Health Service, NSW Businesslink, the University of Western Sydney, Woollahra Municipal Council, Sydney Ports Corporation, Taronga Zoo and the former Department of Housing, fell into administration on September 4.
Mitchell Ball of BPS Recovery was appointed to manage the administration process. Ball told SmartCompany this morning his appointment is related to a wind-up application filed against Kings Security Group by the ATO, which was lodged on August 27.
“The deputy commission of tax had wind-up proceedings commenced against the group,” Ball says.
Ball says while it is too early to determine outstanding amounts owed to the company’s creditors, since being appointed as administrator on Friday he has been going through the initial stages of the process.
He says the directors of Kings Security Group are expected to propose a deed of company arrangement in coming weeks to ensure the best returns for creditors and outcomes for employees.
“I’ll make my assessment, financial and otherwise, to determine whether continuity is in best interests of all creditors and if so, I expect there will be a deed of company arrangement in about two-half weeks,” Ball says.
The first meeting of the company’s creditors will be held in Sydney on September 16.
A major meeting of creditors, which will determine the company’s future, is expected to be held in early October.
Kings Security Group was in the spotlight last year after concerns were raised about it being awarded a NSW state government contract to protect Sydney police stations.
A report from Fairfax about the company followed a five-week NSW ICAC hearing in June of 2012 that attempted to get to the bottom of allegations the company had offered bribes and other perks such as trips to Las Vegas in exchange for lucrative public contracts and its employees had engaged in alleged corrupt conduct.
SmartCompany contacted Kings Security Group but did not receive a response prior to deadline.