AGL - Accordant Group. was previously AWF Madison, Allied...

[BRICKS]

quote:Originally posted by Misc

CONTRACT LABOUR SERVICES (NZ) LIMITED ("CLS")

Further to Allied Work Force Group Limited's ("AWF") announcement on 14
December 2006, that they were undertaking an investigation of its subsidiary
CLS, the shareholders of CLS at 5pm on the 22nd December resolved to place
CLS into liquidation. AWF is working with the Liquidator in an attempt to
ensure that all employees of CLS will be paid for the work undertaken prior
to the liquidation.

I assume AWF is still exposed to the criminal investigations regarding illegal aliens , but have chosen to 'kill' CLS to try and distance themselves from what is obviously an industry wide problem?

I wouldnt touch this crowd with cattle prod!

Misc

Misc, as if anybody would ask you.. [8D]

[Misc]

Voluntary liquidation: Allied Work Force closes Contract Labour Services (NZ) following allegations

Company: Contract Labour Services (NZ) Ltd

Directors: Miles Elliott & Michael Porter, Hastings; Simon Hull, Warkworth & Parnell; Alan Roberts, Browns Bay; Dharminder Singh, Flaxmere; & Greg Webster, Takanini

Liquidation: 22 December

Liquidators: Grant Graham & Brendon Gibson (Ferrier Hodgson)

Directors’ other main interests: The company’s 64% owner, listed company Allied Work Force Ltd, told the NZX today that, further to its announcement on 14 December that it was undertaking an investigation of its subsidiary, the shareholders resolved to place Contract Labour Services into liquidation. “Allied Work Force is working with the liquidator in an attempt to ensure that all employees of Contract Labour Services will be paid for the work undertaken prior to the liquidation.” Contract Labour Services supplies seasonal labour to horticulture, viticulture & agricultural businesses in Hawke’s Bay, Nelson & Canterbury. On 14 December Allied Work Force director Mr Hull said it had come to the company’s attention that the police & Immigration officials were investigating Contract Labour Services for possible offences, including using subcontracted crew without work permits, both before & after Allied bought into the company and without Allied’s knowledge. Mr Elliott is also a director of Contract Labour Services (HB) Ltd, Interprop Ltd & Shelf 116 Ltd and is a former director of Longlands Packing Co Ltd & Squash Harvest HB Ltd. Mr Porter is a director of Awamoa Farm Ltd, Contract Labour Services (HB), Interprop & Spring Creek Investments Ltd, and is a former director of Livestock Ventures Ltd, Modular Pacific Corp Ltd and T&S Averill Horticulture Ltd. Mr Hull is a director of various Allied Work Force companies, Bonus Investments Ltd, Cattle Mtn Run Ltd, Employee Investments Ltd, Falls Road Properties Ltd, Hull Properties Ltd, Makiri Lands Ltd, On Hire NZ Ltd, Quin Workforce Ltd, Spring Creek Investments & Wayby Station Ltd. Mr Roberts is a director of Nalar 2005 Ltd. Mr Singh is a director of D&D Agriculture & Contracting (HB) Ltd and Rents & Investments Ltd. Mr Webster is a director of various Allied Work Force companies, Employee Investments, GSLT Ltd, GSW Investments Ltd & Quin Workforce.

Earlier story, 7 April 2006: Contract Labour buys holiday park to accommodate seasonal workers

[Steve]

Out of interest, does the Immigration Act allow the directors of companies to be personally prosecuted for breaches of the Act by the company?

[BRICKS]

quote:Originally posted by Steve

Out of interest, does the Immigration Act allow the directors of companies to be personally prosecuted for breaches of the Act by the company?

Steve for the record do you live in a TREE.. [8D]

[Steve]

It appears that todays SST could answer my question...

Illegal workers linked to farm firm closure
Hull would not say why liquidation was required -there has been no indication the company was insolvent.

"All the directors decided the company should be liquidated," he told the Star-Times last week. "We found there had been some failure to follow our policies and procedures. That gave us concern and a loss of confidence. We lost confidence in the company and some of the other directors."

It is understood that Immigration Department staff raided the homes of several Contract Labour Services directors, as well as company premises.

Hull said he couldn't comment on whether criminal charges were a likely outcome of the investigation.

[Misc]

I guess the investigation will now focus on the Directors of CLS , starting at the top with Simon Hull??
It seems CLS was insolvent as unsecured creditors will get less than 20c in the dollar according to the Companies Office , its amazes me this kind of thing can still happen on the NZX , if AWF were listed on the ASX then Hull and the other CLS/AWF Directors would be banned from Directorships of listed entities .
Misc

[minimoke]

quote:Originally posted by Misc
... AWF is working with the Liquidator in an attempt to
ensure that all employees of CLS will be paid for the work undertaken prior to the liquidation....

The question is now how many workers is AWF going to pay for and how many weeks pay will they pay if CLS don’t. 200 workers at $500 a week = $100,000. Could be a few hundred thousand $’s yet to be shelled out by AWF.

[Misc]

The shortfall may well be over $1m , depends how much they get in a fire-sale of Spring Creek Holiday Park , its likely AWF gauranteed the loan to buy Spring Creek , then there may be creditor claims on Directors/AWF for trading while insolvent. AWF should clarify its exposure without delay in my opinion.
Misc

[Steve]

As already mentioned earlier, you really have to wonder about the due-dilligence process given that what has transpired has been known by others in the industry for some time

[Misc]

With the strong likelihood of a loss to 31/3 and dividend suspension , AWF will probably trade well under $1 until confidence in management is restored , or heads roll .
Not alot on the buyside now. I wonder if/when NZX will ask the necessary questions ?
Misc