Ostwalds woes has widespread effects
THE WIDESPREAD effects of the collapse of Ostwald Bros has become clearer as administrators establish roughly how much money the company owes to creditors.
PricewaterhouseCoopers revealed the company owed at least $61million to creditors, including companies and businesses across the Maranoa region.
Among the creditors owed money from Ostwalds are Maranoa Regional Council, Roma Rugby Union Club, Golders, Ray White Roma, Santos, Surat Basin Real Estate, EzyQuip and South West TAFE.
PwC's Derrick Vickers said some of the 536 creditors were owed millions of dollars and that Ostwald Bros' debt could potentially be greater than $61million.
Maranoa Regional Council released a statement saying Ostwalds was engaged to undertake the design and construction works of Roma's stage one levee.
"Council became aware that Ostwald Bros had gone into voluntary administration on Monday, August 28,” the statement read.
"Steps have been taken by council to protect our interest.”
The council did not reveal the amount it was owed.
Roma Rugby Union Club president Rob Loughnan said Ostwalds had not paid its sponsorship for this year's season.
Mr Loughnan said Ostwalds had been sponsoring the club $3000 a season for the past five years.
"As a small club, we have high travel costs so we rely on our sponsors to ease the burden on members, supporters and players for their support,” he said.
"As a club we haven't discussed what we're going to do about the money that's owed to us.
"It's a difficult situation because Ostwald Bros have been very generous long-term sponsors and we appreciate the years they've given us.
"We're much more worried about contractors and businesses who are owed a lot more money, that's the wide-reaching effect of this situation.
"We wish them and their stakeholders all the best.”
Creditors have been given two months to meet and decide how the company can be saved and creditors repaid.
The creditors are spread across four entities that make up Ostwald Bros, three of which are in voluntary administration while another, Ostwald Facilities and Accommodation, was placed into liquidation days before the first major announcement from the company on August 28.
The $61 million debt includes $30 million to the only secured creditor, ANZ Bank.